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Is Iridium Communications Inc (IRDM) A Good Stock To Buy?

Now that we’ve mentioned the most bullish investors, let’s also take a look at some funds that sold off their entire stakes in the stock during the third quarter. It’s worth mentioning that Gregory Fraser, Rudolph Kluiber, and Timothy Krochuk’s GRT Capital Partners sold off the largest investment of all the investors followed by Insider Monkey, totaling close to $0.4 million in stock. Ken Griffin’s fund, Citadel Investment Group, also dropped its call options, about $0.3 million worth, while retaining its aforementioned long position.

Let’s check out hedge fund activity in other stocks similar to Iridium Communications Inc (NASDAQ:IRDM). We will take a look at Cresud S.A.C.I.F. y A. (ADR) (NASDAQ:CRESY), LGI Homes Inc (NASDAQ:LGIH), Orthofix International NV (NASDAQ:OFIX), and PHH Corporation (NYSE:PHH). This group of stocks’ market values match IRDM’s market value.

Ticker No of HFs with positions Total Value of HF Positions (x1000) Change in HF Position
CRESY 10 85875 -1
LGIH 10 54893 0
OFIX 23 231332 3
PHH 20 271332 3

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 $161 million. That figure was $19 million in IRDM’s case. Orthofix International NV (NASDAQ:OFIX) is the most popular stock in this table. On the other hand Cresud S.A.C.I.F. y A. (ADR) (NASDAQ:CRESY) is the least popular one with only 10 bullish hedge fund positions. Iridium Communications Inc (NASDAQ:IRDM) 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 OFIX might be a better candidate to consider taking a long position in.

Disclosure: None

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