Is AAC Holdings Inc (AAC) A Good Stock to Buy?

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Now that we’ve mentioned the most bullish investors, let’s also take a look at some funds that got rid of their entire stakes in the stock during the third quarter. Interestingly, Steve Cohen’s Point72 Asset Management got rid of the largest stake of the 700 funds studied by Insider Monkey, worth close to $1.5 million in stock, and Ken Griffin’s Citadel Investment Group was right behind this move, as the fund dropped about $0.5 million worth of shares.

Let’s also examine hedge fund activity in other stocks – not necessarily in the same industry as AAC Holdings Inc (NYSE:AAC) but similarly valued. We will take a look at Genesis Healthcare Inc (NYSE:GEN), YRC Worldwide, Inc. (NASDAQ:YRCW), Blue Hills Bancorp Inc (NASDAQ:BHBK), and GP Strategies Corporation (NYSE:GPX). All of these stocks’ market caps are closest to AAC’s market cap.

Ticker No of HFs with positions Total Value of HF Positions (x1000) Change in HF Position
GEN 5 2172 -1
YRCW 19 112255 -1
BHBK 14 48076 -2
GPX 13 137563 3

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 $75 million. That figure was $47 million in AAC’s case. YRC Worldwide, Inc. (NASDAQ:YRCW) is the most popular stock in this table. On the other hand Genesis Healthcare Inc (NYSE:GEN) is the least popular one with only 5 bullish hedge fund positions. AAC Holdings Inc (NYSE:AAC) 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 YRCW might be a better candidate to consider taking a long position in.

Disclosure: None

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