Is ProAssurance Corporation (PRA) a Good Stock To Buy?

Consequently, some big names have jumped into ProAssurance Corporation (NYSE:PRA) headfirst. Stevens Capital Management, led by Matthew Tewksbury, initiated the biggest position in ProAssurance Corporation (NYSE:PRA). Stevens Capital Management had $0.3 million invested in the company at the end of the quarter. David Costen Haley’s HBK Investments also initiated a $0.3 million position during the quarter. The only other fund with a new position in the stock is Glenn Russell Dubin’s Highbridge Capital Management.

Let’s now review hedge fund activity in other stocks – not necessarily in the same industry as ProAssurance Corporation (NYSE:PRA) but similarly valued. These stocks are NorthWestern Corp (NYSE:NWE), MFA Financial, Inc. (NYSE:MFA), Brinker International, Inc. (NYSE:EAT), and Sunstone Hotel Investors Inc (NYSE:SHO). All of these stocks’ market caps are similar to PRA’s market cap.

As you can see these stocks had an average of 20 funds with bullish positions and the average amount invested in these stocks was $69 million. That figure was $90 million in PRA’s case. Brinker International, Inc. (NYSE:EAT) is the most popular stock in this table. On the other hand NorthWestern Corp (NYSE:NWE) is the least popular one with only six bullish hedge fund positions. ProAssurance Corporation (NYSE:PRA) 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 Brinker International, Inc. (NYSE:EAT) might be a better candidate to consider taking a long position in.

Disclosure: none