Is Nordic American Tanker Ltd (NAT) A Good Stock to Buy?

Now that we’ve mentioned the most bullish investors, let’s also take a look at some funds that dropped their entire stakes in the stock during the third quarter. It’s worth mentioning that Joel Greenblatt’s Gotham Asset Management dropped the largest stake of all the investors studied by Insider Monkey, totaling about $4 million in stock, and Ken Griffin’s Citadel Investment Group was right behind this move, as the fund dropped about $0.9 million worth of shares.

Let’s check out hedge fund activity in other stocks similar to Nordic American Tanker Ltd (NYSE:NAT). We will take a look at Monotype Imaging Holdings Inc. (NASDAQ:TYPE), Associated Capital Group Inc (NYSE:AC), Biglari Holdings Inc (NYSE:BH), and First Commonwealth Financial (NYSE:FCF). All of these stocks’ market caps are similar to NAT’s market cap.

As you can see these stocks had an average of 9 hedge funds with bullish positions and the average amount invested in these stocks was $44 million. That figure was $68 million in NAT’s case. Monotype Imaging Holdings Inc. (NASDAQ:TYPE) is the most popular stock in this table. On the other hand Associated Capital Group Inc (NYSE:AC) is the least popular one with only 4 bullish hedge fund positions. Nordic American Tanker Ltd (NYSE:NAT) is not the most popular stock in this group but hedge fund interest is still above average. This is a slightly positive signal but we’d rather spend our time researching stocks that hedge funds are piling on. In this regard TYPE might be a better candidate to consider taking a long position in.

Disclosure: None