Is Grupo Financiero Galicia S.A. (ADR) (GGAL) A Good Stock To Buy?

Seeing as Grupo Financiero Galicia S.A. (ADR) (NASDAQ:GGAL) has faced falling interest from hedge fund managers, it’s easy to see that there was a specific group of hedge funds that elected to cut their entire stakes by the end of the third quarter. At the top of the heap, Marko Dimitrijevic’s Everest Capital dumped the biggest position of all the hedgies monitored by Insider Monkey, totaling close to $0.8 million in stock, and Mike Vranos’s Ellington was right behind this move, as the fund cut about $0.3 million worth of shares. These moves are intriguing to say the least, as total hedge fund interest fell by 2 funds by the end of the third quarter.

Let’s go over hedge fund activity in other stocks – not necessarily in the same industry as Grupo Financiero Galicia S.A. (ADR) (NASDAQ:GGAL) but similarly valued. These stocks are Blackhawk Network Holdings Inc (NASDAQ:HAWK), China Biologic Products Inc (NASDAQ:CBPO), Steven Madden, Ltd. (NASDAQ:SHOO), and Eldorado Gold Corp (USA) (NYSE:EGO). This group of stocks’ market values resemble GGAL’s market value.

As you can see these stocks had an average of 20 hedge funds with bullish positions and the average amount invested in these stocks was $163 million. That figure was $74 million in GGAL’s case. Blackhawk Network Holdings Inc (NASDAQ:HAWK) is the most popular stock in this table. On the other hand Eldorado Gold Corp (USA) (NYSE:EGO) is the least popular one with only 14 bullish hedge fund positions. Compared to these stocks Grupo Financiero Galicia S.A. (ADR) (NASDAQ:GGAL) is even less popular than EGO. 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.