Is Entercom Communications Corp. (ETM) A Good Stock To Buy?

Judging by the fact that Entercom Communications Corp. (NYSE:ETM) has weathered bearish sentiment from hedge fund managers, it’s easy to see that there was a specific group of hedge funds that slashed their positions entirely by the end of the third quarter. Interestingly, Neil Chriss’ Hutchin Hill Capital sold off the largest stake of all the hedgies monitored by Insider Monkey, totaling about $0.3 million in stock, and Gavin Saitowitz and Cisco J. del Valle’s Springbok Capital was right behind this move, as the fund dumped about $0.1 million worth of shares.

Let’s also examine hedge fund activity in other stocks – not necessarily in the same industry as Entercom Communications Corp. (NYSE:ETM) but similarly valued. We will take a look at JinkoSolar Holding Co., Ltd. (NYSE:JKS), Matrix Service Co (NASDAQ:MTRX), Waterstone Financial, Inc. (NASDAQ:WSBF), and Seres Therapeutics Inc (NASDAQ:MCRB). This group of stocks’ market caps are closest to ETM’s market cap.

As you can see these stocks had an average of 12 hedge funds with bullish positions and the average amount invested in these stocks was $48 million. That figure was $36 million in ETM’s case. Matrix Service Co (NASDAQ:MTRX) is the most popular stock in this table. On the other hand JinkoSolar Holding Co., Ltd. (NYSE:JKS) is the least popular one with only 5 bullish hedge fund positions. Entercom Communications Corp. (NYSE:ETM) is not the least popular stock in this group but hedge fund interest is still below average. This is a slightly negative signal and we’d rather spend our time researching stocks that hedge funds are piling on. In this regard MTRX might be a better candidate to consider taking a long position in.

Disclosure: None