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Is PharMerica Corporation (PMC) a Good Stock to Buy?

Since PharMerica Corporation (NYSE:PMC) has faced bearish sentiment from the aggregate hedge fund industry, it’s safe to say that there exists a select few hedgies who sold off their positions entirely by the end of the first quarter. It’s worth mentioning that John Paulson’s Paulson & Co sold off the largest stake of the 700 funds watched by Insider Monkey, totaling about $17.4 million in stock. Joel Greenblatt’s fund, Gotham Asset Management, also said goodbye to its stock, about $7.4 million worth. These bearish behaviors are interesting, as aggregate hedge fund interest was cut by the five funds during the first quarter.

Let’s check out hedge fund activity in other stocks – not necessarily in the same industry as PharMerica Corporation (NYSE:PMC), but similarly valued. These stocks are Eros International plc (NYSE:EROS), First PacTrust Bancorp, Inc. (NASDAQ:BANC), PHH Corporation (NYSE:PHH), and Global Eagle Acquisition Corp (NASDAQ:ENT). This group of stocks’ market values match PMC’s market value.

Ticker No of HFs with positions Total Value of HF Positions (x1000) Change in HF Position
EROS 12 49135 -7
BANC 14 90686 1
PHH 17 228042 -6
ENT 17 325125 -1

As you can see these stocks had an average of 15 hedge funds with bullish positions and the average amount invested in these stocks was $173 million. That figure was $39 million in PMC’s case. PHH Corporation (NYSE:PHH) is the most popular stock in this table. On the other hand, Eros International plc (NYSE:EROS) is the least popular one with only 12 bullish hedge fund positions. Compared to these stocks PharMerica Corporation (NYSE:PMC) is more popular among hedge funds. Considering that hedge funds are fond of this stock in relation to its market cap peers, it may be a good idea to analyze it in detail and potentially include it in your portfolio.

Disclosure: none

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