Is CorVel Corporation (CRVL) A Good Stock To Buy?

Since CorVel Corporation (NASDAQ:CRVL) has weathered declining sentiment from the entirety of the hedge funds we track, we can see that there lies a certain “tier” of funds who sold off their positions entirely in the third quarter. It’s worth mentioning that Chuck Royce’s Royce & Associates cut the biggest stake of the “upper crust” of funds watched by Insider Monkey, worth about $1.6 million in stock. Joel Greenblatt’s fund, Gotham Asset Management, also cut its stock, about $0.5 million worth.

Let’s go over hedge fund activity in other stocks – not necessarily in the same industry as CorVel Corporation (NASDAQ:CRVL) but similarly valued. These stocks are National Storage Affiliates Trust (NYSE:NSA), K2M Group Holdings Inc (NASDAQ:KTWO), Just Energy Group, Inc. Ordinary Shares (Canada) (NYSE:JE), and Viad Corp (NYSE:VVI). This group of stocks’ market valuations are similar to CRVL’s market valuation.

As you can see these stocks had an average of 11 hedge funds with bullish positions and the average amount invested in these stocks was $66 million. That figure was also $66 million in CRVL’s case. Viad Corp (NYSE:VVI) is the most popular stock in this table. On the other hand Just Energy Group, Inc. Ordinary Shares (Canada) (NYSE:JE) is the least popular one with only 9 bullish hedge fund positions. CorVel Corporation (NASDAQ:CRVL) 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 VVI might be a better candidate to consider taking a long position in.

Disclosure: None