Is Meredith Corporation (MDP) A Good Stock To Buy?

As one would reasonably expect, key money managers have been driving this bullishness. Magnetar Capital, managed by Alec Litowitz and Ross Laser, assembled the most outsized position in Meredith Corporation (NYSE:MDP). Magnetar Capital had $28.5 million invested in the company at the end of the quarter. Richard Driehaus’ Driehaus Capital also initiated a $5.1 million position during the quarter. The following funds were also among the new MDP investors: Paul Marshall and Ian Wace’s Marshall Wace LLP, Gavin Saitowitz and Cisco J. del Valle’s Springbok Capital, and Jacob Gottlieb’s Visium Asset Management.

Let’s also examine hedge fund activity in other stocks – not necessarily in the same industry as Meredith Corporation (NYSE:MDP) but similarly valued. We will take a look at HNI Corp (NYSE:HNI), Party City Holdco Inc (NYSE:PRTY), KLX Inc (NASDAQ:KLXI), and FleetMatics Group PLC (NYSE:FLTX). This group of stocks’ market caps are closest to MDP’s market cap.

As you can see these stocks had an average of 18.25 hedge funds with bullish positions and the average amount invested in these stocks was $226 million. That figure was $336 million in MDP’s case. KLX Inc (NASDAQ:KLXI) is the most popular stock in this table. On the other hand Party City Holdco Inc (NYSE:PRTY) is the least popular one with only 12 bullish hedge fund positions. 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 KLXI might be a better candidate to consider a long position.