Is ViaSat, Inc. (VSAT) A Good Stock To Buy?

Judging by the fact that ViaSat, Inc. (NASDAQ:VSAT) has faced bearish sentiment from hedge fund managers, logic holds that there exists a select few hedgies that slashed their positions entirely last quarter. Intriguingly, John Overdeck and David Siegel’s Two Sigma Advisors cut the largest position of all the hedgies tracked by Insider Monkey, worth an estimated $5.6 million in stock, and Israel Englander’s Millennium Management was right behind this move, as the fund dropped about $5.4 million worth. These bearish behaviors are important to note, as total hedge fund interest was cut by 2 funds last quarter.

Let’s also examine hedge fund activity in other stocks similar to ViaSat, Inc. (NASDAQ:VSAT). These stocks are Hawaiian Electric Industries, Inc. (NYSE:HE), Inovalon Holdings Inc (NASDAQ:INOV), Royal Gold, Inc (USA) (NASDAQ:RGLD), and WuXi PharmaTech (Cayman) Inc. (ADR) (NYSE:WX). This group of stocks’ market valuations resemble VSAT’s market valuation.

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 $218 million. That figure was $1.55 billion in VSAT’s case. Royal Gold, Inc (USA) (NASDAQ:RGLD) is the most popular stock in this table. On the other hand Inovalon Holdings Inc (NASDAQ:INOV) is the least popular one with only 6 bullish hedge fund positions. ViaSat, Inc. (NASDAQ:VSAT) 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 RGLD might be a better candidate to consider a long position.