Is Nobilis Health Corp (HLTH) A Good Stock To Buy?

As industrywide interest jumped, some big names were breaking ground themselves. Keane Capital Management also made a $1.3 million investment in the stock during the quarter. The other funds with brand new Nobilis Health Corp (NYSEMKT:HLTH) positions are Silver Capital Management LLC, and John Overdeck and David Siegel’s Two Sigma Advisors.

Let’s go over hedge fund activity in other stocks – not necessarily in the same industry as Nobilis Health Corp (NYSEMKT:HLTH) but similarly valued. These stocks are Blackrock Corporate High Yield Fund Inc (NYSE:HYT), REX American Resources Corp (NYSE:REX), LSB Industries, Inc. (NYSE:LXU), and Tristate Capital Holdings Inc (NASDAQ:TSC). All of these stocks’ market caps match Nobilis Health Corp (NYSEMKT:HLTH)’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 $59 million. That figure was $6 million in Nobilis Health Corp (NYSEMKT:HLTH)’s case. LSB Industries, Inc. (NYSE:LXU) is the most popular stock in this table. On the other hand, Blackrock Corporate High Yield Fund Inc (NYSE:HYT) is the least popular one with only 7 bullish hedge fund positions. Compared to these stocks, Nobilis Health Corp (NYSEMKT:HLTH) is even less popular than Blackrock Corporate High Yield Fund Inc (NYSE:HYT). 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.