Is Meredith Corporation (MDP) a Good Stock to Buy?

We already know that not all hedge funds are bullish on the stock and some hedge funds actually sold off their positions entirely. Intriguingly, John Petry’s Sessa Capital sold off the biggest investment of the 700 funds watched by Insider Monkey, comprising close to $10.3 million in stock. Paul Marshall and Ian Wace’s fund, Marshall Wace LLP, also cut its stock, about $9.6 million worth.

Let’s go over hedge fund activity in other stocks similar to Meredith Corporation (NYSE:MDP). We will take a look at Kennametal Inc. (NYSE:KMT), Kite Realty Group Trust (NYSE:KRG), Ironwood Pharmaceuticals, Inc. (NASDAQ:IRWD), and AVX Corporation (NYSE:AVX). This group of stocks’ market caps match MDP’s market cap.

Ticker No of HFs with positions Total Value of HF Positions (x1000) Change in HF Position
KMT 24 562745 4
KRG 9 31587 -4
IRWD 21 482398 3
AVX 17 164370 3

As you can see these stocks had an average of 18 funds with bullish positions and the average amount invested in these stocks was $310 million. That figure was $295 million in MDP’s case. Kennametal Inc. (NYSE:KMT) is the most popular stock in this table. On the other hand Kite Realty Group Trust (NYSE:KRG) is the least popular one with only nine investors holding shares. Meredith Corporation (NYSE:MDP) 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 Kennametal Inc. (NYSE:KMT) might be a better candidate to consider taking a long position in.

Disclosure: none