Is Inter Parfums, Inc. (IPAR) A Good Stock To Buy?

Because Inter Parfums, Inc. (NASDAQ:IPAR) has witnessed a declining sentiment from the entirety of the hedge funds we track, logic holds that there exists a select few hedge funds who were dropping their positions entirely heading into Q4. It’s worth mentioning that Joel Greenblatt’s Gotham Asset Management dumped the largest stake of the “upper crust” of funds tracked by Insider Monkey, comprising an estimated $2.6 million in stock, and Israel Englander’s Millennium Management was right behind this move, as the fund cut about $0.5 million worth of shares. These bearish behaviors are interesting, as total hedge fund interest fell by 5 funds heading into Q4.

Let’s now take a look at hedge fund activity in other stocks – not necessarily in the same industry as Inter Parfums, Inc. (NASDAQ:IPAR) but similarly valued. We will take a look at K2M Group Holdings Inc (NASDAQ:KTWO), James River Group Holdings Ltd (NASDAQ:JRVR), and Kforce Inc. (NASDAQ:KFRC). This group of stocks’ market values match Inter Parfums, Inc. (NASDAQ:IPAR)’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 $188 million. That figure was $20 million in Inter Parfums, Inc. (NASDAQ:IPAR)’s case. Kforce Inc. (NASDAQ:KFRC) is the most popular stock in this table. On the other hand, K2M Group Holdings Inc (NASDAQ:KTWO) is the least popular one with only 11 bullish hedge fund positions. Compared to these stocks, Inter Parfums, Inc. (NASDAQ:IPAR) is even less popular than K2M Group Holdings Inc (NASDAQ:KTWO). 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.