Is Monro Muffler Brake Inc (MNRO) A Good Stock To Buy?

Seeing as Monro Muffler Brake Inc (NASDAQ:MNRO) has sustained bearish sentiment from the aggregate hedge fund industry, we can see that there were a few money managers that slashed their positions entirely heading into Q4. It’s worth mentioning that Steve Cohen’s Point72 Asset Management cut the largest stake of the “upper crust” of funds tracked by Insider Monkey, valued at an estimated $8.4 million in stock. Joel Greenblatt’s fund, Gotham Asset Management, also cut its stock, about $1.6 million worth.

Let’s also examine hedge fund activity in other stocks similar to Monro Muffler Brake Inc (NASDAQ:MNRO). We will take a look at Golar LNG Limited (USA) (NASDAQ:GLNG), Parkway Properties Inc (NYSE:PKY), Granite Construction Inc. (NYSE:GVA), and American Assets Trust, Inc (NYSE:AAT). This group of stocks’ market valuations are closest to MNRO’s market valuation.

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 $178 million. That figure was $216 million in MNRO’s case. Golar LNG Limited (USA) (NASDAQ:GLNG) is the most popular stock in this table. On the other hand American Assets Trust, Inc (NYSE:AAT) is the least popular one with only 6 bullish hedge fund positions. Monro Muffler Brake Inc (NASDAQ:MNRO) 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 GLNG might be a better candidate to consider taking a long position in.

Disclosure: None