Is Eclipse Resources Corp (ECR) A Good Stock To Buy?

Judging by the fact that Eclipse Resources Corp (NYSE:ECR) has gone through a decline in interest from the smart money, we can see that there lies a certain “tier” of fund managers that elected to cut their positions entirely last quarter. It’s worth mentioning that Todd J. Kantor’s Encompass Capital Advisors sold off the largest investment of all the hedgies tracked by Insider Monkey, comprising close to $7.3 million in stock. Michael A. Price and Amos Meron’s fund, Empyrean Capital Partners, also dropped its stock, about $5.7 million worth.

Let’s also examine hedge fund activity in other stocks similar to Eclipse Resources Corp (NYSE:ECR). These stocks are NutriSystem Inc. (NASDAQ:NTRI), Babcock & Wilcox Enterprises Inc (NYSE:BW), TCP Capital Corp (NASDAQ:TCPC), and Vitamin Shoppe Inc (NYSE:VSI). All of these stocks’ market caps are similar to ECR’s market cap.

As you can see these stocks had an average of 15 hedge funds with bullish positions and the average amount invested in these stocks was $123 million. That figure was $72 million in ECR’s case. Babcock & Wilcox Enterprises Inc (NYSE:BW) is the most popular stock in this table. On the other hand TCP Capital Corp (NASDAQ:TCPC) is the least popular one with only 6 bullish hedge fund positions. Eclipse Resources Corp (NYSE:ECR) is not the most popular stock in this group but hedge fund interest is still above average. This is a slightly positive signal but we’d rather spend our time researching stocks that hedge funds are piling on. In this regard BW might be a better candidate to consider taking a long position in.

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Disclosure: None