Is EPAM Systems Inc (EPAM) A Good Stock To Buy?

Due to the fact that EPAM Systems Inc (NYSE:EPAM) has experienced declining sentiment from the aggregate hedge fund industry, it’s safe to say that there was a specific group of hedge funds who were dropping their full holdings heading into Q4. At the top of the heap, Alok Agrawal’s Bloom Tree Partners said goodbye to the biggest position of the 700 funds watched by Insider Monkey, valued at an estimated $38.1 million in stock. Matthew Knauer and Mina Faltas’s fund, Nokota Management, also dumped its holding of the stock, about $8.9 million worth of shares. These bearish behaviors are important to note, as aggregate hedge fund interest fell by 1 fund heading into Q4.

Let’s now review hedge fund activity in other stocks similar to EPAM Systems Inc (NYSE:EPAM). We will take a look at BankUnited (NYSE:BKU), Tenet Healthcare Corp (NYSE:THC), Buffalo Wild Wings (NASDAQ:BWLD), and Allegiant Travel Company (NASDAQ:ALGT). This group of stocks’ market values are similar to EPAM’s market value.

As you can see these stocks had an average of 26 hedge funds with bullish positions and the average amount invested in these stocks was $587 million. That figure was $301 million in EPAM’s case. Tenet Healthcare Corp (NYSE:THC) is the most popular stock in this table, while BankUnited (NYSE:BKU) is at the other end of the specter with only 14 bullish hedge fund positions. EPAM Systems Inc (NYSE:EPAM) 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 THC might be a better candidate to consider a long position.