Is Knight Transportation (KNX) A Good Stock To Buy?

Now that we’ve mentioned the most bullish investors, let’s also take a look at some funds that cashed in their entire stakes in the stock during the third quarter. At the top of the heap, Alexander Mitchell’s Scopus Asset Management cashed in the largest stake of all the hedgies watched by Insider Monkey, worth an estimated $5.3 million in stock, and Steve Cohen’s Point72 Asset Management was right behind this move, as the fund cut about $4.2 million worth of shares.

Let’s now take a look at hedge fund activity in other stocks similar to Knight Transportation (NYSE:KNX). We will take a look at WP Glimcher Inc (NYSE:WPG), Armstrong World Industries, Inc. (NYSE:AWI), Washington Real Estate Investment Trust (NYSE:WRE), and Wolverine World Wide, Inc. (NYSE:WWW). This group of stocks’ market values match KNX’s market value.

As you can see these stocks had an average of 16 hedge funds with bullish positions and the average amount invested in these stocks was $399 million. That figure was $35 million in KNX’s case. Armstrong World Industries, Inc. (NYSE:AWI) is the most popular stock in this table. On the other hand Washington Real Estate Investment Trust (NYSE:WRE) is the least popular one with only 11 bullish hedge fund positions. Compared to these stocks Knight Transportation (NYSE:KNX) is even less popular than WRE. 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.

Disclosure: None