Should You Avoid Gray Television, Inc. (GTN)?

We already know that not all hedge funds are bullish on the stock and some hedge funds actually cashed in their positions entirely. At the top of the heap, Eduardo Costa’s Calixto Global Investors cashed in the biggest stake of the “upper crust” of funds followed by Insider Monkey, worth about $26.3 million in stock, and Principal Global Investors’s Columbus Circle Investors was right behind this move, as the fund said goodbye to about $8.3 million worth of shares.

Let’s now take a look at hedge fund activity in other stocks – not necessarily in the same industry as Gray Television, Inc. (NYSE:GTN) but similarly valued. These stocks are Griffon Corporation (NYSE:GFF), Lakeland Financial Corporation (NASDAQ:LKFN), LHC Group, Inc. (NASDAQ:LHCG), and Sonic Automotive Inc (NYSE:SAH). This group of stocks’ market values are similar to GTN’s market value.

As you can see these stocks had an average of 13 hedge funds with bullish positions and the average amount invested in these stocks was $61 million. That figure was $87 million in GTN’s case. LHC Group, Inc. (NASDAQ:LHCG) is the most popular stock in this table. On the other hand Lakeland Financial Corporation (NASDAQ:LKFN) is the least popular one with only 8 bullish hedge fund positions. Gray Television, Inc. (NYSE:GTN) 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 LHCG might be a better candidate to consider taking a long position in.

Disclosure: none.