Is Autohome Inc (ADR) (ATHM) A Good Stock To Buy?

Since Autohome Inc (ADR) (NYSE:ATHM) has experienced a declination in interest from hedge fund managers, it’s safe to say that there exists a select few money managers that slashed their full holdings last quarter. It’s worth mentioning that Philippe Laffont’s Coatue Management dumped the biggest stake of the “upper crust” of funds followed by Insider Monkey, totaling about $39.6 million in stock, and Glen Kacher’s Light Street Capital was right behind this move, as the fund sold off about $14.8 million worth. These bearish behaviors are interesting, as aggregate hedge fund interest dropped by 12 funds last quarter.

Let’s check out hedge fund activity in other stocks similar to Autohome Inc (ADR) (NYSE:ATHM). These stocks are Seaboard Corporation (NYSEMKT:SEB), Umpqua Holdings Corp (NASDAQ:UMPQ), National Instruments Corp (NASDAQ:NATI), and CVR Energy, Inc. (NYSE:CVI). This group of stocks’ market values match ATHM’s market value.

As you can see these stocks had an average of 16 hedge funds with bullish positions and the average amount invested in these stocks was $887 million. That figure was $420 million in ATHM’s case. Umpqua Holdings Corp (NASDAQ:UMPQ) is the most popular stock in this table. On the other hand Seaboard Corporation (NYSEMKT:SEB) is the least popular one with only 7 bullish hedge fund positions. Autohome Inc (ADR) (NYSE:ATHM) 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 UMPQ might be a better candidate to consider a long position.