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

As industrywide interest jumped, key hedge funds were leading the bulls’ herd. Renaissance Technologies established the biggest position in Entercom Communications Corp. (NYSE:ETM). Renaissance Technologies had $0.5 million invested in the company at the end of the quarter. Ken Griffin’s Citadel Investment Group also initiated a $0.3 million position during the quarter. The only other fund with a brand new ETM position is Matthew Hulsizer’s PEAK6 Capital Management.

Let’s go over hedge fund activity in other stocks similar to Entercom Communications Corp. (NYSE:ETM). These stocks are TICC Capital Corp. (NASDAQ:TICC), Stonegate Bank (NASDAQ:SGBK), Noodles & Co (NASDAQ:NDLS), and Century Aluminum Co (NASDAQ:CENX). All of these stocks’ market caps match ETM’s market cap.

As you can see these stocks had an average of 10 hedge funds with bullish positions and the average amount invested in these stocks was $20 million. That figure was $23 million in ETM’s case. Century Aluminum Co (NASDAQ:CENX) is the most popular stock in this table. On the other hand Noodles & Co (NASDAQ:NDLS) is the least popular one with only 7 bullish hedge fund positions. Entercom Communications Corp. (NYSE:ETM) 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 CENX might be a better candidate to consider a long position.