Is Corporate Executive Board Company (CEB) A Good Stock To Buy?

Because The Corporate Executive Board Company (NYSE:CEB) has experienced declining sentiment from the aggregate hedge fund industry, it’s safe to say that there were a few money managers who were dropping their entire stakes heading into Q4. It’s worth mentioning that Matthew Hulsizer’s PEAK6 Capital Management cut the biggest stake of all the hedgies tracked by Insider Monkey, worth about $4.4 million in stock. Richard Driehaus’s fund, Driehaus Capital, also dropped its stock, about $1.8 million worth. These transactions are intriguing to say the least, as total hedge fund interest stayed the same (this is a bearish signal in our experience).

Let’s also examine hedge fund activity in other stocks – not necessarily in the same industry as The Corporate Executive Board Company (NYSE:CEB) but similarly valued. These stocks are Taylor Morrison Home Corp (NYSE:TMHC), XPO Logistics Inc (NYSE:XPO), Convergys Corporation (NYSE:CVG), and F.N.B. Corp (NYSE:FNB). This group of stocks’ market values resemble CEB’s market value.

As you can see these stocks had an average of 23 hedge funds with bullish positions and the average amount invested in these stocks was $301 million. By comparison, The Corporate Executive Board Company (NYSE:CEB) is the least popular stock in this group and the funds we track amassed just $61 million worth of its stock at the end of September. Considering that hedge funds aren’t fond of this stock in relation to other companies analyzed in this article, it may be a good idea to analyze it in detail and understand why the smart money isn’t behind this stock. This isn’t necessarily bad news. Although it is possible that hedge funds may think the stock is overpriced and view the stock as a short candidate, they may not be very familiar with the bullish thesis. In either case more research is warranted.