Is iKang Healthcare Group Inc (ADR) (KANG) A Good Stock To Buy?

Because iKang Healthcare Group Inc (ADR) (NASDAQ:KANG) has experienced a falling interest from the entirety of the hedge funds we track, we can see that there is a sect of hedge funds who sold off their positions entirely heading into Q4. At the top of the heap, Brian Taylor’s Pine River Capital Management dumped the largest position of the “upper crust” of funds tracked by Insider Monkey, comprising close to $13.5 million in stock. Jeffrey Altman’s fund, Owl Creek Asset Management, also said goodbye to its stock, about $12 million worth of shares. These bearish behaviors are important to note, as aggregate hedge fund interest was cut by 5 funds heading into Q4.

Let’s now take a look at hedge fund activity in other stocks similar to iKang Healthcare Group Inc (ADR) (NASDAQ:KANG). We will take a look at Bob Evans Farms Inc (NASDAQ:BOBE), Ingles Markets, Incorporated (NASDAQ:IMKTA), Caesars Acquisition Company (NASDAQ:CACQ), and SpartanNash Co (NASDAQ:SPTN). This group of stocks’ market values are similar to iKang Healthcare Group Inc (ADR) (NASDAQ:KANG)’s market value.

As you can see, these stocks had an average of 16 hedge funds with bullish positions and the average amount invested in these stocks was $154 million. That figure was $39 million in iKang Healthcare Group Inc (ADR) (NASDAQ:KANG)’s case. Bob Evans Farms Inc (NASDAQ:BOBE) is the most popular stock in this table. On the other hand, Ingles Markets, Incorporated (NASDAQ:IMKTA) is the least popular one with only 11 bullish hedge fund positions. Compared to these stocks, iKang Healthcare Group Inc (ADR) (NASDAQ:KANG) is even less popular than Ingles Markets, Incorporated (NASDAQ:IMKTA). Considering that hedge funds aren’t fond of this stock in relation to other companies analyzed in this article, it may be a good idea to analyze it in detail and understand why the smart money isn’t behind this stock. This isn’t necessarily bad news. Although it is possible that hedge funds may think the stock is overpriced and view the stock as a short candidate, they may not be very familiar with the bullish thesis. In either case, more research is warranted.