Is Progress Software Corporation (PRGS) a Good Stock To Buy?

Seeing as Progress Software Corporation (NASDAQ:PRGS) has experienced falling interest from the smart money, we can see that there exists a select few hedgies who sold off their positions entirely heading into Q4. Interestingly, Joel Greenblatt’s Gotham Asset Management cut the biggest investment of the 700 funds watched by Insider Monkey, worth about $0.4 million in stock. Gavin Saitowitz and Cisco J. del Valle’s fund, Springbok Capital, also dumped its stock. These transactions are intriguing to say the least, as aggregate hedge fund interest fell by 2 funds heading into Q4.

Let’s now take a look at hedge fund activity in other stocks similar to Progress Software Corporation (NASDAQ:PRGS). These stocks are Popeyes Louisiana Kitchen Inc (NASDAQ:PLKI), 3D Systems Corporation (NYSE:DDD), WD-40 Company (NASDAQ:WDFC), and RingCentral Inc (NYSE:RNG). This group of stocks’ market valuations match PRGS’s market valuation.

As you can see these stocks had an average of 15 hedge funds with bullish positions and the average amount invested in these stocks was $124 million. That figure was $59 million in PRGS’s case. RingCentral Inc (NYSE:RNG) is the most popular stock in this table. On the other hand WD-40 Company (NASDAQ:WDFC) is the least popular one with only 7 bullish hedge fund positions. Progress Software Corporation (NASDAQ:PRGS) is not the least popular stock in this group but hedge fund interest is still below average. This is a slightly negative signal and we’d rather spend our time researching stocks that hedge funds are piling on. In this regard RNG might be a better candidate to consider a long position.