Is Green Dot Corporation (GDOT) A Good Stock To Buy?

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Due to the fact that Green Dot Corporation (NYSE:GDOT) has witnessed a declination in interest from the smart money, logic holds that there is a sect of fund managers who sold off their positions entirely heading into Q4. Intriguingly, Jim Simons’ Renaissance Technologies said goodbye to the largest position of all the hedgies monitored by Insider Monkey, comprising about $4.1 million in stock. Glenn Russell Dubin’s fund, Highbridge Capital Management, also sold off its stock, about $4.1 million worth. These moves are interesting, as aggregate hedge fund interest dropped by 8 funds heading into Q4.

Let’s go over hedge fund activity in other stocks – not necessarily in the same industry as Green Dot Corporation (NYSE:GDOT) but similarly valued. These stocks are Albany International Corp. (NYSE:AIN), PTC Therapeutics, Inc. (NASDAQ:PTCT), Bristow Group Inc (NYSE:BRS), and Rovi Corporation (NASDAQ:ROVI). All of these stocks’ market caps match GDOT’s market cap.

Ticker No of HFs with positions Total Value of HF Positions (x1000) Change in HF Position
AIN 12 44813 0
PTCT 28 156874 -4
BRS 22 230756 8
ROVI 22 96153 2

As you can see these stocks had an average of 21 hedge funds with bullish positions and the average amount invested in these stocks was $132 million. That figure was $129 million in GDOT’s case. PTC Therapeutics, Inc. (NASDAQ:PTCT) is the most popular stock in this table, while Albany International Corp. (NYSE:AIN) is the least popular one with only 12 bullish hedge fund positions. Green Dot Corporation (NYSE:GDOT) 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, PTCT might be a better candidate to consider for a long position.

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