Is Park Sterling Corp (PSTB) A Good Stock To Buy?

Now that we’ve mentioned the most bullish investors, let’s also take a look at some funds that sold off their entire stakes in the stock during the third quarter. At the top of the heap, J. Alan Reid, Jr.’s Forward Management sold off the biggest investment of the 700 funds followed by Insider Monkey, worth an estimated $0.8 million in stock. Mike Vranos’ fund, Ellington, also dropped its stock, about $0.1 million worth.

Let’s also examine hedge fund activity in other stocks similar to Park Sterling Corp (NASDAQ:PSTB). We will take a look at Brightcove Inc (NASDAQ:BCOV), Zoe’s Kitchen Inc (NYSE:ZOES), World Acceptance Corp. (NASDAQ:WRLD), and China Distance Education Hldgs Ltd (ADR) (NYSE:DL). This group of stocks’ market valuations match PSTB’s market valuation.

As you can see these stocks had an average of 10 funds with bullish positions and the average amount invested in these stocks was $30 million, versus $41 million in PSTB’s case. Brightcove Inc (NASDAQ:BCOV) is the most popular stock in this table. On the other hand China Distance Education Hldgs Ltd (ADR) (NYSE:DL) is the least popular one with only five bullish hedge fund positions. Park Sterling Corp (NASDAQ:PSTB) 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 Brightcove Inc (NASDAQ:BCOV) might be a better candidate to consider taking a long position in.

Disclosure: none