Is Barracuda Networks Inc (CUDA) A Good Stock To Buy?

With a general bullishness amongst the heavyweights, some big names were breaking ground themselves. Arrowstreet Capital assembled the biggest position in Barracuda Networks Inc (NYSE:CUDA) and had $3.3 million invested in the company at the end of the quarter. Peter Muller’s PDT Partners also initiated a $1.8 million position between July and September. The following funds were also among the new CUDA investors: Joel Greenblatt’s Gotham Asset Management, Richard Driehaus’ Driehaus Capital, and Paul Marshall and Ian Wace’s Marshall Wace LLP.

Let’s also examine hedge fund activity in other stocks similar to Barracuda Networks Inc (NYSE:CUDA). These stocks are Gray Television, Inc. (NYSE:GTN), Griffon Corporation (NYSE:GFF), Lakeland Financial Corporation (NASDAQ:LKFN), and LHC Group, Inc. (NASDAQ:LHCG). This group of stocks’ market caps are similar to CUDA’s market cap.

As you can see these stocks had an average of 14 funds with bullish positions and the average amount invested in these stocks was $73 million. That figure was $56 million in CUDA’s case. LHC Group, Inc. (NASDAQ:LHCG) is the most popular stock in this table. On the other hand Lakeland Financial Corporation (NASDAQ:LKFN) is the least popular one with only eight bullish hedge fund positions. Barracuda Networks Inc (NYSE:CUDA) 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 LHC Group, Inc. (NASDAQ:LHCG) might be a better candidate to consider taking a long position in.

Disclosure: None