Is Neff Corp (NEFF) A Good Stock To Buy?

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Interestingly, Alec Litowitz and Ross Laser’s Magnetar Capital said goodbye to the biggest stake of the 700 funds watched by Insider Monkey, comprising close to $5 million in stock, and Leon Cooperman’s Omega Advisors was right behind this move, as the fund dropped about $2.5 million worth. These moves are intriguing to say the least, as aggregate hedge fund interest stayed the same (this is a bearish signal in our experience).

Let’s also examine hedge fund activity in other stocks similar to Neff Corp (NYSE:NEFF). These stocks are Luby’s, Inc. (NYSE:LUB), Westfield Financial, Inc. (NASDAQ:WFD), Spartan Motors Inc (NASDAQ:SPAR), and City Office REIT Inc (NYSE:CIO). This group of stocks’ market values resemble NEFF’s market value.

Ticker No of HFs with positions Total Value of HF Positions (x1000) Change in HF Position
LUB 4 12139 -1
WFD 5 20206 -1
SPAR 8 24868 -1
CIO 5 6784 1

As you can see these stocks had an average of 5.5 hedge funds with bullish positions and the average amount invested in these stocks was $16 million. That figure was $9 million in NEFF’s case. Spartan Motors Inc (NASDAQ:SPAR) is the most popular stock in this table. On the other hand Luby’s, Inc. (NYSE:LUB) is the least popular one with only 4 bullish hedge fund positions. Neff Corp (NYSE:NEFF) 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 SPAR might be a better candidate to consider a long position.

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