Is Select Income REIT (SIR) A Good Stock To Buy?

Now that we’ve mentioned the most bullish investors, let’s also take a look at some funds that dumped their entire stakes in the stock during the third quarter. Intriguingly, D E Shaw dumped the largest position of the 700 funds watched by Insider Monkey, valued at close to $0.8 million in stock, and Richard Driehaus’s Driehaus Capital was right behind this move, as the fund cut about $0.5 million worth of shares.

Let’s also examine hedge fund activity in other stocks similar to Select Income REIT (NASDAQ:SIR). We will take a look at First Financial Bankshares Inc (NASDAQ:FFIN), Lithia Motors Inc (NYSE:LAD), Summit Materials Inc (NYSE:SUM), and Ormat Technologies, Inc. (NYSE:ORA). This group of stocks’ market caps are closest to SIR’s market cap.

As you can see these stocks had an average of 16 hedge funds with bullish positions and the average amount invested in these stocks was $220 million. That figure was $80 million in SIR’s case. Summit Materials Inc (NYSE:SUM) is the most popular stock in this table. On the other hand First Financial Bankshares Inc (NASDAQ:FFIN) is the least popular one with only 4 bullish hedge fund positions. Select Income REIT (NASDAQ:SIR) 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 SUM might be a better candidate to consider taking a long position in.