Is Cardinal Financial Corporation (CFNL) A Good Stock To Buy?

As industrywide interest jumped, specific money managers have been driving this bullishness. Funds with new positions in the stock are Matthew Tewksbury’s Stevens Capital Management, Paul Tudor Jones’s Tudor Investment Corp, and Ken Griffin’s Citadel Investment Group.

Let’s go over hedge fund activity in other stocks – not necessarily in the same industry as Cardinal Financial Corporation (NASDAQ:CFNL) but similarly valued. These stocks are TriMas Corp (NASDAQ:TRS), Transocean Partners LLC (NYSE:RIGP), Insys Therapeutics Inc (NASDAQ:INSY), and Fifth Street Finance Corp. (NASDAQ:FSC). All of these stocks’ market caps match CFNL’s market cap.

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 $95 million. That figure was $70 million in CFNL’s case. Insys Therapeutics Inc (NASDAQ:INSY) is the most popular stock in this table. On the other hand Transocean Partners LLC (NYSE:RIGP) is the least popular one with only 8 bullish hedge fund positions. Cardinal Financial Corporation (NASDAQ:CFNL) 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 INSY might be a better candidate to consider taking a long position in.