Is AMERCO (UHAL) A Good Stock To Buy?

Since AMERCO (NASDAQ:UHAL) has experienced bearish sentiment from hedge fund managers, it’s easy to see that there lies a certain “tier” of hedgies who sold off their entire stakes last quarter. Intriguingly, Alexander Captain’s Cat Rock Capital cut the largest investment of the 700 funds followed by Insider Monkey, worth about $17.5 million in stock, and Julian Robertson’s Tiger Management was right behind this move, as the fund dumped about $15 million worth of UHAL shares. These moves are important to note, as aggregate hedge fund interest was cut by 1 fund last quarter.

Let’s check out hedge fund activity in other stocks – not necessarily in the same industry as AMERCO (NASDAQ:UHAL) but similarly valued. These stocks are Cadence Design Systems Inc (NASDAQ:CDNS), New York Community Bancorp, Inc. (NYSE:NYCB), Icahn Enterprises LP (NASDAQ:IEP), and W.P. Carey Inc. REIT (NYSE:WPC). This group of stocks’ market valuations match UHAL’s market valuation.

As you can see these stocks had an average of 15 hedge funds with bullish positions and the average amount invested in these stocks was $1.88 billion. That figure was $341 million in UHAL’s case. Cadence Design Systems Inc (NASDAQ:CDNS) is the most popular stock in this table. On the other hand Icahn Enterprises LP (NASDAQ:IEP) is the least popular one with only 4 bullish hedge fund positions. AMERCO (NASDAQ:UHAL) 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 CDNS might be a better candidate to consider a long position.

Disclosure: none.