Is CIBER, Inc. (CBR) 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: Coe Capital 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 in this case because none of the 700+ hedge funds tracked by Insider Monkey identified CBR as a viable investment and initiated a position in the stock.

Let’s check out hedge fund activity in other stocks similar to CIBER, Inc. (NYSE:CBR). These stocks are OraSure Technologies, Inc. (NASDAQ:OSUR), Innocoll AG (NASDAQ:INNL), Electro Rent Corporation (NASDAQ:ELRC), and HENNESS CAPITAL ACQUISITION CORP II (NASDAQ:HCAC). This group of stocks’ market valuations resemble CBR’s market valuation.

As you can see these stocks had an average of 14.5 hedge funds with bullish positions and the average amount invested in these stocks was $39 million.That figure was $24 million in CBR’s case. OraSure Technologies, Inc. (NASDAQ:OSUR) is the most popular stock in this table. On the other hand Innocoll AG (NASDAQ:INNL) is the least popular one with only 5 bullish hedge fund positions. CIBER, Inc. (NYSE:CBR) 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 OSUR might be a better candidate to consider a long position.