Has The Time To Buy Davita Inc (DVA) Arrived?

Due to the fact that Davita Inc (NYSE:DVA) has experienced a decline in interest from the smart money, we can see that there is a sect of hedge funds that decided to sell off their full holdings by the end of the third quarter. Interestingly, Andreas Halvorsen’s Viking Global sold off the biggest investment of the “upper crust” of funds monitored by Insider Monkey, worth about $356.6 million in stock, and John Armitage’s Egerton Capital Limited was right behind this move, as the fund dumped about $263.4 million worth of shares. These transactions are intriguing to say the least, as total hedge fund interest was cut by 1 fund by the end of the third quarter.

Let’s now take a look at hedge fund activity in other stocks similar to Davita Inc (NYSE:DVA). These stocks are Goldcorp Inc. (USA) (NYSE:GG), CenturyLink, Inc. (NYSE:CTL), Expedia Inc (NASDAQ:EXPE), and Liberty Interactive Corp (NASDAQ:QVCA). All of these stocks’ market caps are closest to DVA’s market cap.

As you can see these stocks had an average of 48 hedge funds with bullish positions and the average amount invested in these stocks was $2.14 billion. That figure was $3.42 billion in DVA’s case. Liberty Interactive Corp (NASDAQ:QVCA) is the most popular stock in this table. On the other hand Goldcorp Inc. (USA) (NYSE:GG) is the least popular one with only 24 bullish hedge fund positions. Davita Inc (NYSE:DVA) 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 QVCA might be a better candidate to consider a long position.

Disclosure: None