Is Public Storage (PSA) A Good Stock To Buy?

Seeing as Public Storage (NYSE:PSA) has faced a decline in interest from the aggregate hedge fund industry, we can see that there was a specific group of hedgies who sold off their entire stakes in the third quarter. It’s worth mentioning that Matthew Tewksbury’s Stevens Capital Management cut the largest position of all the hedgies followed by Insider Monkey, comprising close to $7.4 million in stock, and Dmitry Balyasny’s Balyasny Asset Management was right behind this move, as the fund cut about $5.5 million worth. These bearish behaviors are important to note, as total hedge fund interest fell by 1 funds in the third quarter.

Let’s check out hedge fund activity in other stocks similar to Public Storage (NYSE:PSA). We will take a look at PowerShares QQQ Trust, Series 1 (ETF) (NASDAQ:QQQ), LIBERTY GLOBAL PLC (NASDAQ:LBTYK), Delta Air Lines, Inc. (NYSE:DAL), and JD.Com Inc (ADR) (NASDAQ:JD). This group of stocks’ market caps are similar to PSA’s market cap.

As you can see these stocks had an average of 73 hedge funds with bullish positions and the average amount invested in these stocks was $6.39 billion. That figure was $653 million in PSA’s case. Delta Air Lines, Inc. (NYSE:DAL) is the most popular stock in this table, while PowerShares QQQ Trust, Series 1 (ETF) (NASDAQ:QQQ) is the least popular one with only 23 bullish hedge fund positions. Compared to these stocks Public Storage (NYSE:PSA) is even less popular than QQQ. 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 required.