Is Neustar Inc (NSR) A Good Stock To Buy?

Because Neustar Inc (NYSE:NSR) has encountered declining sentiment from hedge fund managers, it’s easy to see that there was a specific group of hedge funds that decided to sell off their entire stakes last quarter. It’s worth mentioning that Spencer M. Waxman’s Shannon River Fund Management cut the biggest stake of all the investors monitored by Insider Monkey, valued at about $9.4 million in stock. Paul Marshall and Ian Wace’s fund, Marshall Wace LLP, also dropped its stock, about $2.4 million worth.

Let’s now review hedge fund activity in other stocks – not necessarily in the same industry as Neustar Inc (NYSE:NSR) but similarly valued. These stocks are Time Inc (NYSE:TIME), Globant SA (NYSE:GLOB), Nationstar Mortgage Holdings Inc (NYSE:NSM), and BlackRock Credit All Inc Trust IV (NYSE:BTZ). All of these stocks’ market caps are similar to NSR’s market cap.

As you can see these stocks had an average of 12 funds with bullish positions and the average amount invested in these stocks was $104 million, versus $96 million in NSR’s case. Time Inc (NYSE:TIME) is the most popular stock in this table. On the other hand BlackRock Credit All Inc Trust IV (NYSE:BTZ) is the least popular one with only three funds holding shares. Neustar Inc (NYSE:NSR) 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 Time Inc (NYSE:TIME) might be a better candidate to consider taking a long position in.

Disclosure: none