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Is Fidelity National Information Services (FIS) A Good Stock To Buy?

Seeing as Fidelity National Information Services (NYSE:FIS) has witnessed falling interest from hedge fund managers, it’s safe to say that there were a few hedgies that decided to sell off their full holdings by the end of the third quarter. At the top of the heap, Louis Bacon’s Moore Global Investments sold off the largest stake of all the hedgies watched by Insider Monkey, comprising about $21.6 million in stock. Jim Simons’s fund, Renaissance Technologies, also dumped its stock, about $6.4 million worth of shares. These transactions are intriguing to say the least, as total hedge fund interest stayed the same (this is a bearish signal in our experience).

Let’s now take a look at hedge fund activity in other stocks similar to Fidelity National Information Services (NYSE:FIS). We will take a look at Ventas, Inc. (NYSE:VTR), PACCAR Inc (NASDAQ:PCAR), Western Digital Corp. (NASDAQ:WDC), and Twitter Inc (NYSE:TWTR). This group of stocks’ market caps are similar to FIS’s market cap.

Ticker No of HFs with positions Total Value of HF Positions (x1000) Change in HF Position
VTR 22 465222 -2
PCAR 34 450787 7
WDC 51 2249022 2
TWTR 27 248317 -20

As you can see these stocks had an average of 34 hedge funds with bullish positions and the average amount invested in these stocks was $853 million. In the case of FIS, that figure was $1.57 billion. Western Digital Corp. (NASDAQ:WDC) is the most popular stock in this table, while Ventas, Inc. (NYSE:VTR) is the least popular one with only 22 bullish hedge fund positions. Fidelity National Information Services (NYSE:FIS) is not the most popular stock in this group, but hedge fund interest is still above average. Although this is a slightly positive signal, we’d rather spend our time researching stocks that hedge funds are piling on. In this regard WDC might be a better candidate to consider a long position.

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