Is Vista Outdoor Inc (VSTO) A Good Stock To Buy?

Now that we’ve mentioned the most bullish investors, let’s also take a look at some funds that cut their entire stakes in the stock during the third quarter. Interestingly, First Eagle Investment Management cut the biggest stake of the 700 funds studied by Insider Monkey, worth about $236.3 million in stock. Dmitry Balyasny’s fund, Balyasny Asset Management, also sold off its stock, about $15 million worth.

Let’s check out hedge fund activity in other stocks – not necessarily in the same industry as Vista Outdoor Inc (NYSE:VSTO) but similarly valued. We will take a look at XPO Logistics Inc (NYSE:XPO), National Health Investors Inc (NYSE:NHI), American Eagle Outfitters (NYSE:AEO), and ITT Corp (NYSE:ITT). This group of stocks’ market valuations resemble VSTO’s market valuation.

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 $404 million. That figure was $342 million in VSTO’s case. American Eagle Outfitters (NYSE:AEO) is the most popular stock in this table. On the other hand National Health Investors Inc (NYSE:NHI) is the least popular one with only 10 bullish hedge fund positions. Vista Outdoor Inc (NYSE:VSTO) 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 AEO might be a better candidate to consider taking a long position in.

Disclosure: None