Should You Avoid IBERIABANK Corporation (IBKC)?

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Judging by the fact that IBERIABANK Corporation (NASDAQ:IBKC) has faced a declination in interest from hedge fund managers, logic holds that there is a sect of hedgies that decided to sell off their entire stakes in the third quarter. It’s worth mentioning that Sharif Siddiqui’s Alpenglow Capital sold off the biggest investment of all the hedgies monitored by Insider Monkey, valued at an estimated $6.2 million in stock, and Paul Tudor Jones’s Tudor Investment Corp was right behind this move, as the fund cut about $0.3 million worth of shares. These bearish behaviors are important to note, as total hedge fund interest dropped by 2 funds in the third quarter.

Let’s now take a look at hedge fund activity in other stocks – not necessarily in the same industry as IBERIABANK Corporation (NASDAQ:IBKC) but similarly valued. We will take a look at Huntsman Corporation (NYSE:HUN), Nu Skin Enterprises, Inc. (NYSE:NUS), Big Lots, Inc. (NYSE:BIG), and CLARCOR Inc. (NYSE:CLC). All of these stocks’ market caps are closest to IBERIABANK Corporation (NASDAQ:IBKC)’s market cap.

Ticker No of HFs with positions Total Value of HF Positions (x1000) Change in HF Position
HUN 45 465214 7
NUS 29 175945 6
BIG 18 254501 -6
CLC 15 150331 3

As you can see, these stocks had an average of 27 hedge funds with bullish positions and the average amount invested in these stocks was $261 million. That figure was $189 million in IBERIABANK Corporation (NASDAQ:IBKC)’s case. Huntsman Corporation (NYSE:HUN) is the most popular stock in this table. On the other hand, CLARCOR Inc. (NYSE:CLC) is the least popular one with only 15 bullish hedge fund positions. Compared to these stocks, IBERIABANK Corporation (NASDAQ:IBKC) is even less popular than CLARCOR Inc. (NYSE:CLC). Considering that hedge funds aren’t fond of this stock in relation to other companies analyzed in this article, it may be a good idea to analyze it in detail and understand why the smart money isn’t behind this stock. This isn’t necessarily bad news. Although it is possible that hedge funds may think the stock is overpriced and view the stock as a short candidate, they may not be very familiar with the bullish thesis. In either case, more research is warranted.

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