Is Scorpio Bulkers Inc (SALT) A Good Stock To Buy?

Due to the fact that Scorpio Bulkers Inc (NYSE:SALT) has witnessed bearish sentiment from hedge fund managers, it’s easy to see that there was a specific group of money managers who sold off their entire stakes in the third quarter. At the top of the heap, Robert Henry Lynch’s Aristeia Capital dumped the biggest position of the “upper crust” of funds followed by Insider Monkey, valued at an estimated $9 million in stock. Steve Cohen’s fund, Point72 Asset Management, also dumped its stock, about $4.1 million worth. These bearish behaviors are intriguing to say the least, as total hedge fund interest dropped by 6 funds in the third quarter.

Let’s now take a look at hedge fund activity in other stocks – not necessarily in the same industry as Scorpio Bulkers Inc (NYSE:SALT) but similarly valued. These stocks are RealD (NYSE:RLD), Northwest Biotherapeutics, Inc (NASDAQ:NWBO), ShoreTel, Inc. (NASDAQ:SHOR), and Seacoast Banking Corporation of Florida (NASDAQ:SBCF). This group of stocks’ market values match SALT’s market value.

As you can see these stocks had an average of 15.75 hedge funds with bullish positions and the average amount invested in these stocks was $126 million. That figure was $227 million in SALT’s case. ShoreTel, Inc. (NASDAQ:SHOR) is the most popular stock in this table. On the other hand Northwest Biotherapeutics, Inc (NASDAQ:NWBO) is the least popular one with only 12 bullish hedge fund positions. Scorpio Bulkers Inc (NYSE:SALT) 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 SHOR might be a better candidate to consider a long position.