Is Continental Resources, Inc. (CLR) A Good Stock To Buy?

Judging by the fact that Continental Resources, Inc. (NYSE:CLR) has faced declining sentiment from the entirety of the hedge funds we track, logic holds that there was a specific group of hedgies who were dropping their full holdings by the end of the third quarter. It’s worth mentioning that Dmitry Balyasny’s Balyasny Asset Management said goodbye to the biggest investment of the 700 funds watched by Insider Monkey, comprising close to $24.2 million in stock, and Pasco Alfaro / Richard Tumure’s Miura Global Management was right behind this move, as the fund cut about $19.1 million worth. These transactions are interesting, as total hedge fund interest dropped by 8 funds by the end of the third quarter.

Let’s check out hedge fund activity in other stocks similar to Continental Resources, Inc. (NYSE:CLR). These stocks are Rockwell Collins, Inc. (NYSE:COL), D.R. Horton, Inc. (NYSE:DHI), SL Green Realty Corp (NYSE:SLG), and CBRE Group Inc (NYSE:CBG). This group of stocks’ market caps are closest to CLR’s market cap.

As you can see these stocks had an average of 25.25 hedge funds with bullish positions and the average amount invested in these stocks was $813 million. That figure was $448 million in CLR’s case. D.R. Horton, Inc. (NYSE:DHI) is the most popular stock in this table. On the other hand SL Green Realty Corp (NYSE:SLG) is the least popular one with only 12 bullish hedge fund positions. Continental Resources, Inc. (NYSE:CLR) 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 DHI might be a better candidate to consider a long position.