Is Chemical Financial Corporation (CHFC) A Good Stock To Buy?

Judging by the fact that Chemical Financial Corporation (NASDAQ:CHFC) has witnessed a decline in interest from the entirety of the hedge funds we track, it’s easy to see that there lies a certain “tier” of funds who were dropping their entire stakes by the end of the third quarter. It’s worth mentioning that Neil Chriss’ Hutchin Hill Capital cashed in the largest position of all the investors watched by Insider Monkey, comprising an estimated $6.8 million in stock. John Overdeck and David Siegel’s fund, Two Sigma Advisors, also dumped its stock, about $5.7 million worth.

Let’s go over hedge fund activity in other stocks similar to Chemical Financial Corporation (NASDAQ:CHFC). We will take a look at DSW Inc. (NYSE:DSW), Werner Enterprises, Inc. (NASDAQ:WERN), Cogent Communications Group, Inc. (NASDAQ:CCOI), and Houlihan Lokey Inc (NYSE:HLI). All of these stocks’ market caps resemble CHFC’s market cap.

As you can see these stocks had an average of 16 hedge funds with bullish positions and the average amount invested in these stocks was $136 million. That figure was $69 million in CHFC’s case. DSW Inc. (NYSE:DSW) is the most popular stock in this table. On the other hand Houlihan Lokey Inc (NYSE:HLI) is the least popular one with only 10 bullish hedge fund positions. Chemical Financial Corporation (NASDAQ:CHFC) 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 DSW might be a better candidate to consider taking a long position in.

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Disclosure: None