Is Multi Packaging Solutions Intrntnl Ltd (MPSX) Going To Burn Investors?

We already know that not all hedge funds are bullish on the stock and some hedge funds actually got rid of their positions entirely. It’s worth mentioning that Barry Rosenstein’s JANA Partners got rid of the biggest stake of the 700 funds tracked by Insider Monkey, comprising about $3.3 million in stock, and Ben Levine, Andrew Manuel and Stefan Renold’s LMR Partners was right behind this move, as the fund sold off about $2.2 million worth of shares.

Let’s also examine hedge fund activity in other stocks – not necessarily in the same industry as Multi Packaging Solutions Intrntnl Ltd (NYSE:MPSX) but similarly valued. These stocks are CONMED Corporation (NASDAQ:CNMD), Multi-Color Corporation (NASDAQ:LABL), Orion Engineered Carbons SA (NYSE:OEC), and Momo Inc (ADR) (NASDAQ:MOMO). This group of stocks’ market valuations are similar to MPSX’s market valuation.

As you can see these stocks had an average of 13 hedge funds with bullish positions and the average amount invested in these stocks was $152 million. That figure was $34 million in MPSX’s case. Momo Inc (ADR) (NASDAQ:MOMO) is the most popular stock in this table. On the other hand Multi-Color Corporation (NASDAQ:LABL) is the least popular one with only 7 bullish hedge fund positions. Multi Packaging Solutions Intrntnl Ltd (NYSE:MPSX) 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 MOMO might be a better candidate to consider taking a long position in.

Disclosure: None