Is Oracle Corporation (ORCL) A Good Stock To Buy?

Since Oracle Corporation (NYSE:ORCL) has faced falling interest from the aggregate hedge fund industry, we can see that there lies a certain “tier” of fund managers that elected to cut their entire stakes in the third quarter. At the top of the heap, Daniel S. Och’s OZ Management dropped the largest position of the 700 funds watched by Insider Monkey, worth close to $84.6 million in stock, and Jonathan Bloomberg’s BloombergSen was right behind this move, as the fund dropped about $73 million worth of shares.

Let’s go over hedge fund activity in other stocks – not necessarily in the same industry as Oracle Corporation (NYSE:ORCL) but similarly valued. These stocks are Visa Inc (NYSE:V), Royal Dutch Shell plc (ADR) (NYSE:RDS), Citigroup Inc. (NYSE:C), and Chevron Corporation (NYSE:CVX). This group of stocks’ market caps are similar to ORCL’s market cap.

As you can see these stocks had an average of 76 hedge funds with bullish positions and the average amount invested in these stocks was $5.37 billion, while in ORCL, hedge funds have amassed positions valued at $7.27 billion in aggregate. Citigroup Inc. (NYSE:C) is the most popular stock in this table. On the other hand Royal Dutch Shell plc (ADR) (NYSE:RDS) is the least popular one with only 34 bullish hedge fund positions. Oracle Corporation (NYSE:ORCL) 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 C might be a better candidate to consider a long position.