Is Petrobras Argentina SA ADR (PZE) A Good Stock To Buy?

We already know that not all hedge funds are bullish on the stock and some hedge funds actually dumped their positions entirely. It’s worth mentioning that Satyen Mehta’s Neon Liberty Capital Management dumped the biggest investment of the 700 funds tracked by Insider Monkey, totaling an estimated $12.1 million in stock, and Matthew Tewksbury’s Stevens Capital Management was right behind this move, as the fund said goodbye to about $0.1 million worth of shares.

Let’s go over hedge fund activity in other stocks similar to Petrobras Argentina SA ADR (NYSE:PZE). These stocks are Barracuda Networks Inc (NYSE:CUDA), The E.W. Scripps Company (NYSE:SSP), SUPERVALU INC. (NYSE:SVU), and Neenah Paper, Inc. (NYSE:NP). This group of stocks’ market caps match PZE’s market cap.

As you can see these stocks had an average of 17 hedge funds with bullish positions and the average amount invested in these stocks was $162 million. That figure was $11 million in PZE’s case. SUPERVALU INC. (NYSE:SVU) is the most popular stock in this table. On the other hand The E.W. Scripps Company (NYSE:SSP) is the least popular one with only 10 bullish hedge fund positions. Compared to these stocks Petrobras Argentina SA ADR (NYSE:PZE) is even less popular than SSP. 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.

Disclosure: None