Is Flagstar Bancorp Inc (FBC) A Good Stock To Buy?

Judging by the fact that Flagstar Bancorp Inc (NYSE:FBC) has sustained falling interest from the smart money, it’s safe to say that there were a few hedge funds who sold off their full holdings last quarter. It’s worth mentioning that Mark Kingdon’s Kingdon Capital got rid of the largest stake of the “upper crust” of funds watched by Insider Monkey, worth about $8.2 million in stock. Porter Collins, Daniel Moses, and Vincent Daniel’s fund, Seawolf Capital, also sold off its stock, about $7.3 million worth.

Let’s now take a look at hedge fund activity in other stocks – not necessarily in the same industry as Flagstar Bancorp Inc (NYSE:FBC) but similarly valued. We will take a look at Lifelock Inc (NYSE:LOCK), Colliers International Group Inc (NASDAQ:CIGI), Plexus Corp. (NASDAQ:PLXS), and Halozyme Therapeutics, Inc. (NASDAQ:HALO). All of these stocks’ market caps match FBC’s market cap.

As you can see these stocks had an average of 17 hedge funds with bullish positions and the average amount invested in these stocks was $181 million. That figure was $67 million in FBC’s case. Lifelock Inc (NYSE:LOCK) is the most popular stock in this table. On the other hand Colliers International Group Inc (NASDAQ:CIGI) is the least popular one with only 10 bullish hedge fund positions. Compared to these stocks Flagstar Bancorp Inc (NYSE:FBC) is as less popular than CIGI. 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