Is Cascade Bancorp (CACB) A Good Stock To Buy?

We view hedge fund activity in the stock unfavorable, but in this case there was only a single hedge fund selling its entire position: Millennium Management. One hedge fund selling its entire position doesn’t always imply a bearish intent. Theoretically a hedge fund may decide to sell a promising position in order to invest the proceeds in a more promising idea. However, we don’t think this is the case here because none of the 700+ hedge funds tracked by Insider Monkey identified Cascade Bancorp (NASDAQ:CACB) as a viable investment and initiated a position in the stock.

Let’s check out hedge fund activity in other stocks similar to Cascade Bancorp (NASDAQ:CACB). We will take a look at FormFactor, Inc. (NASDAQ:FORM), Rudolph Technologies Inc (NYSE:RTEC), Peoples Bancorp Inc. (NASDAQ:PEBO), and JA Solar Holdings Co., Ltd. (ADR) (NASDAQ:JASO). This group of stocks’ market valuations match Cascade Bancorp (NASDAQ:CACB)’s market valuation.

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 $30 million. That figure was $83 million in Cascade Bancorp (NASDAQ:CACB)’s case. Rudolph Technologies Inc (NYSE:RTEC) is the most popular stock in this table. On the other hand, JA Solar Holdings Co., Ltd. (ADR) (NASDAQ:JASO) is the least popular one with only 5 bullish hedge fund positions. Cascade Bancorp (NASDAQ:CACB) 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, Rudolph Technologies Inc (NYSE:RTEC) might be a better candidate to consider a long position.