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Is Kforce Inc. (KFRC) A Good Stock To Buy?

Since Kforce Inc. (NASDAQ:KFRC) has witnessed a decline in interest from the entirety of the hedge funds we track, it’s safe to say that there exists a select few fund managers who were dropping their entire stakes heading into Q4. It’s worth mentioning that Dmitry Balyasny’s Balyasny Asset Management said goodbye to the largest position of the 700 funds studied by Insider Monkey, comprising an estimated $0.4 million in stock, and Joshua Packwood and Schuster Tanger’s Radix Partners was right behind this move, as the fund sold off about $0.3 million worth of shares.

Let’s now take a look at hedge fund activity in other stocks – not necessarily in the same industry as Kforce Inc. (NASDAQ:KFRC) but similarly valued. We will take a look at Kadant Inc. (NYSE:KAI), CytomX Therapeutics Inc (NASDAQ:CTMX), Loxo Oncology Inc (NASDAQ:LOXO), and Modine Manufacturing Co. (NYSE:MOD). This group of stocks’ market valuations are closest to KFRC’s market valuation.

Ticker No of HFs with positions Total Value of HF Positions (x1000) Change in HF Position
KAI 13 57330 -2
CTMX 7 46621 -2
LOXO 11 224908 1
MOD 10 43734 -1

As you can see these stocks had an average of 10.25 hedge funds with bullish positions and the average amount invested in these stocks was $93 million. That figure was $22 million in KFRC’s case. Kadant Inc. (NYSE:KAI) is the most popular stock in this table. On the other hand CytomX Therapeutics Inc (NASDAQ:CTMX) is the least popular one with only 7 bullish hedge fund positions. Kforce Inc. (NASDAQ:KFRC) 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 KAI might be a better candidate to consider taking a long position in.