Is Discovery Communications Inc. (DISCA) A Good Stock To Buy?

We already know that not all hedge funds are bullish on the stock and some hedge funds actually said goodbye to their positions entirely. At the top of the heap, Wallace Weitz’s Wallace R. Weitz & Co. said goodbye to the biggest investment of all the investors tracked by Insider Monkey, worth close to $38.2 million in stock. Steve Cohen’s fund, Point72 Asset Management, also sold off its stock, about $10.2 million worth.

Let’s now review hedge fund activity in other stocks – not necessarily in the same industry as Discovery Communications Inc. (NASDAQ:DISCA) but similarly valued. These stocks are Dell Technologies Inc (NYSE:DVMT), Annaly Capital Management, Inc. (NYSE:NLY), Restaurant Brands International Inc (NYSE:QSR), and Discovery Communications Inc. (NASDAQ:DISCK). This group of stocks’ market caps are closest to DISCA’s market cap.

Ticker No of HFs with positions Total Value of HF Positions (x1000) Change in HF Position
DVMT 86 3586212 86
NLY 13 120034 -4
QSR 32 3143758 1
DISCK 21 280090 -3

As you can see these stocks had an average of 38 hedge funds with bullish positions and the average amount invested in these stocks was $1.78 billion. That figure was $293 million in DISCA’s case. Dell Technologies Inc (NYSE:DVMT) is the most popular stock in this table. On the other hand Annaly Capital Management, Inc. (NYSE:NLY) is the least popular one with only 13 bullish hedge fund positions. Discovery Communications Inc. (NASDAQ:DISCA) 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 DVMT might be a better candidate to consider taking a long position in.

Disclosure: None