Is Stantec Inc. (USA) (STN) A Good Stock To Buy?

Since Stantec Inc. (USA) (NYSE:STN) has encountered declining sentiment from the smart money, it’s safe to say that there exists a select few hedgies who sold off their positions entirely last quarter. Interestingly, Peter Rathjens, Bruce Clarke and John Campbell’s Arrowstreet Capital cashed in the biggest investment of the “upper crust” of funds studied by Insider Monkey, comprising about $2.9 million in stock, and Ken Griffin’s Citadel Investment Group was right behind this move, as the fund sold off about $0.4 million worth of shares.

Let’s check out hedge fund activity in other stocks similar to Stantec Inc. (USA) (NYSE:STN). These stocks are Louisiana-Pacific Corporation (NYSE:LPX), CNO Financial Group Inc (NYSE:CNO), UniFirst Corp (NYSE:UNF), and Pure Storage Inc(NYSE:PSTG). All of these stocks’ market caps are closest to STN’s market cap.

As you can see these stocks had an average of 20 hedge funds with bullish positions and the average amount invested in these stocks was $245 million. That figure was $25 million in STN’s case. Louisiana-Pacific Corporation (NYSE:LPX) is the most popular stock in this table. On the other hand UniFirst Corp (NYSE:UNF) is the least popular one with only 13 bullish hedge fund positions. Compared to these stocks Stantec Inc. (USA) (NYSE:STN) is even less popular than UNF. 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 warranted.

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