Is Crestwood Equity Partners LP (CEQP) a Good Stock to Buy?

We already know that not all hedge funds are bullish on the stock and some hedge funds actually cut their positions entirely. Intriguingly, Alec Litowitz and Ross Laser’s Magnetar Capital cut the largest position of all the investors watched by Insider Monkey, totaling an estimated $5.1 million in stock, and Brian Gaines’s Springhouse Capital Management was right behind this move, as the fund cut about $0.4 million worth of shares.

Let’s now take a look at hedge fund activity in other stocks similar to Crestwood Equity Partners LP (NYSE:CEQP). We will take a look at Infoblox Inc (NYSE:BLOX), Noah Holdings Limited (ADR) (NYSE:NOAH), Children’s Place Retail Stores, Inc. (NASDAQ:PLCE), and American States Water Co (NYSE:AWR). All of these stocks’ market caps resemble CEQP’s market cap.

As you can see these stocks had an average of 16.75 hedge funds with bullish positions and the average amount invested in these stocks was $187 million. That figure was $20 million in CEQP’s case. Infoblox Inc (NYSE:BLOX) is the most popular stock in this table. On the other hand Noah Holdings Limited (ADR) (NYSE:NOAH) is the least popular one with only 8 bullish hedge fund positions. Compared to these stocks Crestwood Equity Partners LP (NYSE:CEQP) is even less popular than NOAH. Considering that hedge funds aren’t fond of this stock in relation to other companies analyzed in this article, it may be a good idea to analyze it in detail and understand why the smart money isn’t behind this stock. This isn’t necessarily bad news. Although it is possible that hedge funds may think the stock is overpriced and view the stock as a short candidate, they may not be very familiar with the bullish thesis. In either case more research is warranted.

Disclosure: None