Is The St. Joe Company (JOE) A Good Stock To Buy?

Due to the fact that The St. Joe Company (NYSE:JOE) has witnessed declining sentiment from hedge fund managers, it’s easy to see that there lies a certain “tier” of fund managers who sold off their positions entirely by the end of the third quarter. It’s worth mentioning that Peter Muller’s PDT Partners cut the biggest position of the “upper crust” of funds watched by Insider Monkey, worth about $1.2 million in stock. D. E. Shaw’s fund, D E Shaw, also said goodbye to its stock, about $0.6 million worth. These bearish behaviors are intriguing to say the least, as total hedge fund interest was cut by 1 funds by the end of the third quarter.

Let’s also examine hedge fund activity in other stocks similar to The St. Joe Company (NYSE:JOE). These stocks are Ferrellgas Partners, L.P. (NYSE:FGP), Mellanox Technologies, Ltd. (NASDAQ:MLNX), Eastgroup Properties Inc (NYSE:EGP), and Heartland Express, Inc. (NASDAQ:HTLD). This group of stocks’ market valuations are closest to JOE’s market valuation.

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 $146 million. That figure was $516 million in JOE’s case. Mellanox Technologies, Ltd. (NASDAQ:MLNX) is the most popular stock in this table. On the other hand Ferrellgas Partners, L.P. (NYSE:FGP) is the least popular one with only 4 bullish hedge fund positions. The St. Joe Company (NYSE:JOE) is not the least popular stock in this group but hedge fund interest is still below average. Given the hedge fund position size, however, JOE is worth a closer look.