Is Insulet Corporation (PODD) A Good Stock To Buy?

Judging by the fact that Insulet Corporation (NASDAQ:PODD) has witnessed bearish sentiment from the entirety of the hedge funds we track, logic holds that there were a few hedge funds that elected to cut their entire stakes heading into Q4. Intriguingly, Yen Liow’s Aravt Global dropped the largest position of all the investors followed by Insider Monkey, valued at an estimated $18 million in stock, and Matthew Hulsizer’s PEAK6 Capital Management was right behind this move, as the fund cut about $1 million worth of shares.

Let’s also examine hedge fund activity in other stocks – not necessarily in the same industry as Insulet Corporation (NASDAQ:PODD) but similarly valued. We will take a look at Luxoft Holding Inc (NYSE:LXFT), Cosan Limited (USA) (NYSE:CZZ), Pattern Energy Group Inc (NASDAQ:PEGI), and International Bancshares Corp (NASDAQ:IBOC). This group of stocks’ market values match PODD’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 $107 million. That figure was $367 million in PODD’s case. Cosan Limited (USA) (NYSE:CZZ) is the most popular stock in this table. On the other hand International Bancshares Corp (NASDAQ:IBOC) is the least popular one with only 10 bullish hedge fund positions. Insulet Corporation (NASDAQ:PODD) 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 CZZ might be a better candidate to consider taking a long position in.

Disclosure: None