Is Frontline Ltd. (FRO) A Good Stock To Buy?

Now that we’ve mentioned the most bullish investors, let’s also take a look at some funds that cut their entire stakes in the stock during the third quarter. At the top of the heap, Robert B. Gillam’s McKinley Capital Management cut the biggest investment of all the investors monitored by Insider Monkey, valued at about $1.2 million in stock. Peter Muller’s fund, PDT Partners, also said goodbye to its stock, about $0.6 million worth.

Let’s now review hedge fund activity in other stocks – not necessarily in the same industry as Frontline Ltd. (NYSE:FRO) but similarly valued. We will take a look at Quotient Technology Inc(NYSE:QUOT), Trade Desk Inc (NASDAQ:TTD), Multi Packaging Solutions Intrntnl Ltd (NYSE:MPSX), and CONMED Corporation (NASDAQ:CNMD). This group of stocks’ market caps are similar to FRO’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 $73 million. That figure was $9 million in FRO’s case. Quotient Technology Inc(NYSE:QUOT) is the most popular stock in this table. On the other hand Trade Desk Inc (NASDAQ:TTD) is the least popular one with only 9 bullish hedge fund positions. Compared to these stocks Frontline Ltd. (NYSE:FRO) is even less popular than TTD. 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