Is ReTailMeNot Inc (SALE) A Good Stock To Buy?

Judging by the fact that ReTailMeNot Inc (NASDAQ:SALE) has encountered a decline in interest from the aggregate hedge fund industry, it’s easy to see that there exists a select few funds that decided to sell off their entire stakes in the third quarter. Interestingly, Neil Chriss’ Hutchin Hill Capital dropped the biggest stake of the “upper crust” of funds studied by Insider Monkey, valued at close to $0.6 million in stock. Glenn Russell Dubin’s fund, Highbridge Capital Management, also sold off its stock, about $0.4 million worth.

Let’s now take a look at hedge fund activity in other stocks – not necessarily in the same industry as ReTailMeNot Inc (NASDAQ:SALE) but similarly valued. These stocks are PTC Therapeutics, Inc. (NASDAQ:PTCT), Fidelity Southern Corporation (NASDAQ:LION), Extreme Networks, Inc (NASDAQ:EXTR), and Alpine Global Premier Properties Fund (NYSE:AWP). This group of stocks’ market valuations are closest to SALE’s market valuation.

As you can see these stocks had an average of 13 hedge funds with bullish positions and the average amount invested in these stocks was $49 million. That figure was $56 million in SALE’s case. Extreme Networks, Inc (NASDAQ:EXTR) is the most popular stock in this table. On the other hand Alpine Global Premier Properties Fund (NYSE:AWP) is the least popular one with only 4 bullish hedge fund positions. ReTailMeNot Inc (NASDAQ:SALE) 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 EXTR might be a better candidate to consider taking a long position in.

Disclosure: None