Is Capital Senior Living Corporation (CSU) A Good Stock To Buy?

Due to the fact that Capital Senior Living Corporation (NYSE:CSU) has witnessed declining sentiment from the smart money, it’s safe to say that there is a sect of fund managers who were dropping their entire stakes heading into Q4. It’s worth mentioning that Louis Bacon’s Moore Global Investments dumped the biggest investment of the 700 funds tracked by Insider Monkey, totaling an estimated $4.9 million in stock. Gavin Saitowitz and Cisco J. del Valle’s fund, Springbok Capital, also dumped its stock, about $1.1 million worth. These transactions are intriguing to say the least, as total hedge fund interest stayed the same (this is a bearish signal in our experience).

Let’s now take a look at hedge fund activity in other stocks similar to Capital Senior Living Corporation (NYSE:CSU). We will take a look at ePlus Inc. (NASDAQ:PLUS), 1-800-FLOWERS.COM, Inc. (NASDAQ:FLWS), Avianca Holdings SA (ADR) (NYSE:AVH), and WCI Communities Inc (NYSE:WCIC). All of these stocks’ market caps are closest to CSU’s market cap.

As you can see these stocks had an average of 12 hedge funds with bullish positions and the average amount invested in these stocks was $58 million. That figure was $145 million in CSU’s case. The least popular stock in this table is Avianca Holdings SA (ADR) (NYSE:AVH) , while the most popular one is WCI Communities Inc (NYSE:WCIC). In comparison, Capital Senior Living Corporation (NYSE:CSU) with 19 bullish hedge fund positions is not the most popular stock in this group but it has still attracted attention from investors. Although this may imply it is a stock worth considering, we’d rather spend our time researching stocks that hedge funds are collectively fondest of, and in this case, WCIC might be a better alternative.