Is Natus Medical Inc (BABY) 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. It’s worth mentioning that Steve Cohen’s Point72 Asset Management cashed in the largest position of the 700 funds followed by Insider Monkey, totaling an estimated $23.5 million in stock, and Ken Grossman and Glen Schneider’s SG Capital Management was right behind this move, as the fund cut about $17.7 million worth of shares.

Let’s now review hedge fund activity in other stocks – not necessarily in the same industry as Natus Medical Inc (NASDAQ:BABY) but similarly valued. These stocks are CVR Refining LP (NYSE:CVRR), Flow International Corporation (NASDAQ:FLOW), Methode Electronics Inc. (NYSE:MEI), and Denbury Resources Inc. (NYSE:DNR). This group of stocks’ market caps are closest to BABY’s market cap.

As you can see these stocks had an average of 14 hedge funds with bullish positions and the average amount invested in these stocks was $92 million. That figure was $94 million in BABY’s case. Denbury Resources Inc. (NYSE:DNR) is the most popular stock in this table. On the other hand CVR Refining LP (NYSE:CVRR) is the least popular one with only 6 bullish hedge fund positions. Natus Medical Inc (NASDAQ:BABY) is not the most popular stock in this group but hedge fund interest is still above average. This is a slightly positive signal but we’d rather spend our time researching stocks that hedge funds are piling on. In this regard DNR might be a better candidate to consider taking a long position in.

Disclosure: None