Is BNC Bancorp (BNCN) A Good Stock to Buy?

Because BNC Bancorp (NASDAQ:BNCN) has witnessed declining sentiment from hedge fund managers, it’s safe to say that there were a few fund managers that decided to sell off their positions entirely by the end of the third quarter. At the top of the heap, Ken Griffin’s Citadel Investment Group cashed in the largest position of all the hedgies monitored by Insider Monkey, worth close to $0.3 million in stock. Gavin Saitowitz and Cisco J. del Valle’s fund, Springbok Capital, also said goodbye to its small position in the stock.

Let’s check out hedge fund activity in other stocks similar to BNC Bancorp (NASDAQ:BNCN). We will take a look at Osisko Gold Royalties Ltd (NYSE:OR), Union First Market Bankshares Corp. (NASDAQ:UBSH), Abaxis Inc (NASDAQ:ABAX), and Coherus Biosciences Inc (NASDAQ:CHRS). This group of stocks’ market values match BNCN’s market value.

Ticker No of HFs with positions Total Value of HF Positions (x1000) Change in HF Position
OR 5 13875 5
UBSH 13 40675 -1
ABAX 8 26481 -2
CHRS 19 120944 5

As you can see these stocks had an average of 11 hedge funds with bullish positions and the average amount invested in these stocks was $50 million. That figure was $58 million in BNCN’s case. Coherus Biosciences Inc (NASDAQ:CHRS) is the most popular stock in this table. On the other hand Osisko Gold Royalties Ltd (NYSE:OR) is the least popular one with only 5 bullish hedge fund positions. BNC Bancorp (NASDAQ:BNCN) 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 CHRS might be a better candidate to consider taking a long position in.

Disclosure: None