Is Fidelity Southern Corporation (LION) A Good Stock To Buy?

Seeing as Fidelity Southern Corporation (NASDAQ:LION) has encountered bearish sentiment from the entirety of the hedge funds we track, it’s safe to say that there were a few fund managers that decided to sell off their entire stakes by the end of the third quarter. Intriguingly, Anton Schutz’s Mendon Capital Advisors cut the largest investment of all the hedgies followed by Insider Monkey, worth an estimated $5.2 million in stock, and Robert B. Gillam’s McKinley Capital Management was right behind this move.

Let’s now review hedge fund activity in other stocks – not necessarily in the same industry as Fidelity Southern Corporation (NASDAQ:LION) but similarly valued. These stocks are Extreme Networks, Inc (NASDAQ:EXTR), Alpine Global Premier Properties Fund (NYSE:AWP), Carrols Restaurant Group, Inc. (NASDAQ:TAST), and Anworth Mortgage Asset Corporation (NYSE:ANH). This group of stocks’ market values are similar to LION’s market value.

As you can see these stocks had an average of 15 hedge funds with bullish positions and the average amount invested in these stocks was $53 million. That figure was $40 million in LION’s case. Extreme Networks, Inc (NASDAQ:EXTR) is the most popular stock in this table. On the other hand Alpine Global Premier Properties Fund (NYSE:AWP) is the least popular one with only 4 bullish hedge fund positions. Fidelity Southern Corporation (NASDAQ:LION) 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 EXTR might be a better candidate to consider taking a long position in.

Disclosure: None