Is Entercom Communications Corp. (ETM) A Good Stock To Buy?

As industrywide interest jumped, key hedge funds were leading the bulls’ herd. Renaissance Technologies established the biggest position in Entercom Communications Corp. (NYSE:ETM). Renaissance Technologies had $0.5 million invested in the company at the end of the quarter. Ken Griffin’s Citadel Investment Group also initiated a $0.3 million position during the quarter. The only other fund with a brand new ETM position is Matthew Hulsizer’s PEAK6 Capital Management.

Let’s go over hedge fund activity in other stocks similar to Entercom Communications Corp. (NYSE:ETM). These stocks are TICC Capital Corp. (NASDAQ:TICC), Stonegate Bank (NASDAQ:SGBK), Noodles & Co (NASDAQ:NDLS), and Century Aluminum Co (NASDAQ:CENX). All of these stocks’ market caps match ETM’s market cap.

Ticker No of HFs with positions Total Value of HF Positions (x1000) Change in HF Position
TICC 8 28929 -1
SGBK 9 10794 1
NDLS 7 14840 -2
CENX 14 25847 -10

As you can see these stocks had an average of 10 hedge funds with bullish positions and the average amount invested in these stocks was $20 million. That figure was $23 million in ETM’s case. Century Aluminum Co (NASDAQ:CENX) is the most popular stock in this table. On the other hand Noodles & Co (NASDAQ:NDLS) is the least popular one with only 7 bullish hedge fund positions. Entercom Communications Corp. (NYSE:ETM) is not the most popular stock in this group but hedge fund interest is still above average. This is a slightly positive signal but we’d rather spend our time researching stocks that hedge funds are piling on. In this regard CENX might be a better candidate to consider a long position.