Is CVB Financial Corp. (CVBF) a Good Stock to Buy?

With a general bullishness amongst the heavyweights, key money managers were leading the bulls’ herd. Ellington established the biggest position in CVB Financial Corp. (NASDAQ:CVBF). Citadel Investment Group also made a $0.5 million investment in the stock during the quarter. The other funds with brand new CVBF positions are John Overdeck and David Siegel’s Two Sigma Advisors, and Matthew Tewksbury’s Stevens Capital Management.

Let’s check out hedge fund activity in other stocks similar to CVB Financial Corp. (NASDAQ:CVBF). We will take a look at Old National Bancorp (NYSE:ONB), Columbia Banking System Inc (NASDAQ:COLB), El Paso Electric Company (NYSE:EE), and Cosan Limited (USA) (NYSE:CZZ). This group of stocks’ market valuations match CVBF’s market valuation.

As you can see these stocks had an average of 12 hedge funds with bullish positions and the average amount invested in these stocks was $106 million. That figure was $5 million in CVBF’s case. Cosan Limited (USA) (NYSE:CZZ) is the most popular stock in this table. On the other hand Columbia Banking System Inc (NASDAQ:COLB) is the least popular one with only 6 bullish hedge fund positions. CVB Financial Corp. (NASDAQ:CVBF) 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 CZZ might be a better candidate to consider taking a long position in.

Disclosure: None