Is CBS Corporation (CBS) A Good Stock To Buy?

Because CBS Corporation (NYSE:CBS) has witnessed falling interest from the aggregate hedge fund industry, it’s easy to see that there were a few money managers that elected to cut their full holdings last quarter. At the top of the heap, Michael Messner’s Seminole Capital (Investment Mgmt) cut the biggest investment of all the hedgies tracked by Insider Monkey, valued at about $31.4 million in stock, and Jim Simons’s Renaissance Technologies was right behind this move, as the fund dumped about $17.4 million worth. These transactions are intriguing to say the least, as total hedge fund interest dropped by 3 funds last quarter.

Let’s also examine hedge fund activity in other stocks – not necessarily in the same industry as CBS Corporation (NYSE:CBS) but similarly valued. These stocks are Ventas, Inc. (NYSE:VTR), CRH PLC (ADR) (NYSE:CRH), DISH Network Corp. (NASDAQ:DISH), and VMware, Inc. (NYSE:VMW). This group of stocks’ market caps are similar to CBS’s market cap.

Ticker No of HFs with positions Total Value of HF Positions (x1000) Change in HF Position
VTR 18 441525 3
CRH 8 83584 3
DISH 57 2963893 5
VMW 43 1797988 2

As you can see these stocks had an average of 32 funds with long positions and the average amount invested in these stocks was $1.32 billion. That figure was $2.87 billion in CBS’s case. DISH Network Corp. (NASDAQ:DISH) is the most popular stock in this table. On the other hand CRH PLC (ADR) (NYSE:CRH) is the least popular one with only eight funds holding shares. CBS Corporation (NYSE:CBS) 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 DISH Network Corp might be a better candidate to consider a long position.