Is Invacare Corporation (IVC) A Good Stock To Buy?

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Due to the fact that Invacare Corporation (NYSE:IVC) has witnessed a bearish sentiment from the entirety of the hedge funds we track, it’s safe to say that there was a specific group of hedgies that elected to cut their entire stakes last quarter. At the top of the heap, Ken Griffin’s Citadel Investment Group said goodbye to the largest investment of the “upper crust” of funds monitored by Insider Monkey, worth close to $1.7 million in stock. Chao Ku’s fund, Nine Chapters Capital Management, also sold off its stock, about $0.8 million worth of shares. These transactions are important to note, as total hedge fund interest was cut by 2 funds last quarter.

Let’s now take a look at hedge fund activity in other stocks – not necessarily in the same industry as Invacare Corporation (NYSE:IVC) but similarly valued. These stocks are INTL Fcstone Inc (NASDAQ:INTL), ChipMOS Technologies (Bermuda) Ltd (NASDAQ:IMOS), Chuy’s Holdings Inc (NASDAQ:CHUY), and Westwood Holdings Group, Inc. (NYSE:WHG). All of these stocks’ market caps are closest to Invacare Corporation (NYSE:IVC)’s market cap.

Ticker No of HFs with positions Total Value of HF Positions (x1000) Change in HF Position
INTL 14 75228 -3
IMOS 18 163692 -3
CHUY 18 59520 7
WHG 5 85376 -1

As you can see, these stocks had an average of 14 hedge funds with bullish positions and the average amount invested in these stocks was $96 million. That figure was $69 million in Invacare Corporation (NYSE:IVC)’s case. ChipMOS Technologies (Bermuda) Ltd (NASDAQ:IMOS) is the most popular stock in this table. On the other hand, Westwood Holdings Group, Inc. (NYSE:WHG) is the least popular one with only 5 bullish hedge fund positions. Invacare Corporation (NYSE:IVC) 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, ChipMOS Technologies (Bermuda) Ltd (NASDAQ:IMOS) might be a better candidate to consider a long position.

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