Do Hedge Funds Love Unit Corporation (UNT)?

Seeing as Unit Corporation (NYSE:UNT) has witnessed a declination in interest from hedge fund managers, logic holds that there is a sect of fund managers who were dropping their positions entirely by the end of the third quarter. Interestingly, Steve Cohen’s Point72 Asset Management sold off the biggest position of the 700 funds followed by Insider Monkey, totaling an estimated $37.2 million in stock. Cliff Asness’s fund, AQR Capital Management, also dumped its stock, about $6.4 million worth. These transactions are interesting, as total hedge fund interest was cut by 2 funds by the end of the third quarter.

Let’s go over hedge fund activity in other stocks – not necessarily in the same industry as Unit Corporation (NYSE:UNT) but similarly valued. These stocks are Mirati Therapeutics, Inc. (NASDAQ:MRTX), AppFolio Inc (NASDAQ:APPF), Blucora Inc (NASDAQ:BCOR), and Heritage Financial Corporation (NASDAQ:HFWA). All of these stocks’ market caps match UNT’s market cap.

As you can see these stocks had an average of 12.5 hedge funds with bullish positions and the average amount invested in these stocks was $93 million. That figure was $77 million in UNT’s case. Mirati Therapeutics, Inc. (NASDAQ:MRTX) is the most popular stock in this table. On the other hand AppFolio Inc (NASDAQ:APPF) is the least popular one with only 5 bullish hedge fund positions. Unit Corporation (NYSE:UNT) 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 MRTX might be a better candidate to consider a long position.