Is IDT Corporation (IDT) A Good Stock to Buy?

Judging by the fact that IDT Corporation (NYSE:IDT) has encountered flat sentiment from the aggregate hedge fund industry, we can see that there lies a certain “tier” of hedgies who sold off their entire stakes in the third quarter. It’s worth mentioning that Peter Algert and Kevin Coldiron’s Algert Coldiron Investors dropped the biggest position of the “upper crust” of funds studied by Insider Monkey, comprising close to $0.8 million in stock, and Glenn Russell Dubin’s Highbridge Capital Management was right behind this move, as the fund sold off about $0.2 million worth of shares.

Let’s go over hedge fund activity in other stocks – not necessarily in the same industry as IDT Corporation (NYSE:IDT) but similarly valued. These stocks are Flexsteel Industries, Inc. (NASDAQ:FLXS), First Bancorp (NASDAQ:FBNC), Whitestone REIT (NYSE:WSR), and NanoString Technologies Inc (NASDAQ:NSTG). This group of stocks’ market caps are closest to IDT’s market cap.

Ticker No of HFs with positions Total Value of HF Positions (x1000) Change in HF Position
FLXS 8 60147 2
FBNC 8 26592 0
WSR 7 11132 -1
NSTG 21 100355 9

As you can see these stocks had an average of 11 hedge funds with bullish positions and the average amount invested in these stocks was $50 million. That figure was $40 million in IDT’s case. NanoString Technologies Inc (NASDAQ:NSTG) is the most popular stock in this table. On the other hand Whitestone REIT (NYSE:WSR) is the least popular one with only 7 bullish hedge fund positions. IDT Corporation (NYSE:IDT) 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 NSTG might be a better candidate to consider taking a long position in.

Disclosure: None