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Is Culp, Inc. (CFI) A Good Stock To Buy?

Due to the fact that Culp, Inc. (NYSE:CFI) has encountered declining sentiment from the entirety of the hedge funds we track, it’s easy to see that there was a specific group of hedge funds that decided to sell off their positions entirely by the end of the third quarter. It’s worth mentioning that Neil Chriss’ Hutchin Hill Capital sold off the largest investment of the “upper crust” of funds watched by Insider Monkey, worth an estimated $0.3 million in stock, and Dmitry Balyasny’s Balyasny Asset Management was right behind this move, as the fund dropped about $0.2 million worth of shares.

Let’s now take a look at hedge fund activity in other stocks – not necessarily in the same industry as Culp, Inc. (NYSE:CFI) but similarly valued. We will take a look at Spok Holdings Inc (NASDAQ:SPOK), Cytokinetics, Inc. (NASDAQ:CYTK), Dynex Capital Inc (NYSE:DX), and Landec Corporation (NASDAQ:LNDC). All of these stocks’ market caps are closest to CFI’s market cap.

Ticker No of HFs with positions Total Value of HF Positions (x1000) Change in HF Position
SPOK 5 32940 -5
CYTK 14 86056 1
DX 8 9110 3
LNDC 6 66086 0

As you can see these stocks had an average of 8 hedge funds with bullish positions and the average amount invested in these stocks was $49 million. That figure was $28 million in CFI’s case. Cytokinetics, Inc. (NASDAQ:CYTK) is the most popular stock in this table. On the other hand Spok Holdings Inc (NASDAQ:SPOK) is the least popular one with only 5 bullish hedge fund positions. Culp, Inc. (NYSE:CFI) 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 CYTK might be a better candidate to consider taking a long position in.

Disclosure: None