Is TubeMogul Inc (TUBE) A Good Stock To Buy?

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Due to the fact that TubeMogul Inc (NASDAQ:TUBE) has witnessed falling interest from the entirety of the hedge funds we track, logic holds that there was a specific group of hedge funds who sold off their full holdings by the end of the third quarter. Interestingly, Ken Griffin’s Citadel Investment Group cut the biggest stake of the 700 funds watched by Insider Monkey, totaling an estimated $3.4 million in stock. Nick Niell’s fund, Arrowgrass Capital Partners, also said goodbye to its stock, about $2.7 million worth. These transactions are interesting, as aggregate hedge fund interest stayed the same (this is a bearish signal in our experience).

Let’s also examine hedge fund activity in other stocks – not necessarily in the same industry as TubeMogul Inc (NASDAQ:TUBE) but similarly valued. We will take a look at Ascent Capital Group Inc (NASDAQ:ASCMA), Park-Ohio Holdings Corp. (NASDAQ:PKOH), Citi Trends, Inc. (NASDAQ:CTRN), and Schnitzer Steel Industries, Inc. (NASDAQ:SCHN). This group of stocks’ market valuations resemble TUBE’s market valuation.

Ticker No of HFs with positions Total Value of HF Positions (x1000) Change in HF Position
ASCMA 14 100797 -1
PKOH 6 32077 0
CTRN 17 60769 -2
SCHN 17 76493 3

As you can see these stocks had an average of 14 hedge funds with bullish positions and the average amount invested in these stocks was $68 million. That figure was $48 million in TUBE’s case. Citi Trends, Inc. (NASDAQ:CTRN) is the most popular stock in this table. On the other hand Park-Ohio Holdings Corp. (NASDAQ:PKOH) is the least popular one with only 6 bullish hedge fund positions. TubeMogul Inc (NASDAQ:TUBE) 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 CTRN might be a better candidate to consider a long position.

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