Is Urban Outfitters, Inc. (URBN) A Good Stock To Buy Now?

Due to the fact that Urban Outfitters, Inc. (NASDAQ:URBN) has faced bearish sentiment from hedge fund managers, it’s easy to see that there exists a select few hedgies that elected to cut their entire stakes heading into Q4. Interestingly, Gregg Moskowitz’s Interval Partners dropped the largest investment of all the hedgies monitored by Insider Monkey, totaling about $27.5 million in call options.

Let’s now review hedge fund activity in other stocks – not necessarily in the same industry as Urban Outfitters, Inc. (NASDAQ:URBN) but similarly valued. These stocks are Take-Two Interactive Software, Inc. (NASDAQ:TTWO), Texas Roadhouse Inc (NASDAQ:TXRH), Ubiquiti Networks Inc (NASDAQ:UBNT), and First Horizon National Corporation (NYSE:FHN). This group of stocks’ market caps are similar to URBN’s market cap.

As you can see these stocks had an average of 24.75 hedge funds with bullish positions and the average amount invested in these stocks was $487 million. That figure was $272 million in URBN’s case. Take-Two Interactive Software, Inc. (NASDAQ:TTWO) is the most popular stock in this table. On the other hand Ubiquiti Networks Inc (NASDAQ:UBNT) is the least popular one with only 15 bullish hedge fund positions. Urban Outfitters, Inc. (NASDAQ:URBN) 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 TTWO might be a better candidate to consider a long position in.

Disclosure: None