Is Frontier Communications Corp (FTR) A Good Stock to Sell?

Because Frontier Communications Corp (NASDAQ:FTR) has witnessed falling interest from the entirety of the hedge funds we track, logic holds that there is a sect of funds who sold off their full holdings in the third quarter. Interestingly, Brian Ashford-Russell and Tim Woolley’s Polar Capital sold off the largest stake of all the hedgies monitored by Insider Monkey, totaling about $23 million in stock. Howard Marks’ fund, Oaktree Capital Management, also dropped its stock, about $16.5 million worth. These moves are intriguing to say the least, as total hedge fund interest fell by 1 fund in the third quarter.

Let’s now take a look at hedge fund activity in other stocks similar to Frontier Communications Corp (NASDAQ:FTR). These stocks are TreeHouse Foods Inc. (NYSE:THS), Black Knight Financial Services Inc (NYSE:BKFS), Grupo Aeroportuario del Pacifico (ADR) (NYSE:PAC), and KAR Auction Services Inc (NYSE:KAR). This group of stocks’ market values are similar to FTR’s market value.

As you can see these stocks had an average of 17.5 hedge funds with bullish positions and the average amount invested in these stocks was $322 million. That figure was $136 million in FTR’s case. KAR Auction Services Inc (NYSE:KAR) is the most popular stock in this table. On the other hand Grupo Aeroportuario del Pacifico (ADR) (NYSE:PAC) is the least popular one with only 5 bullish hedge fund positions. Frontier Communications Corp (NASDAQ:FTR) 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 KAR might be a better candidate to consider a long position in.

Disclosure: None