Is Polycom Inc (PLCM) a Good Stock To Buy?

Since Polycom Inc (NASDAQ:PLCM) has experienced bearish sentiment from the smart money, it’s easy to see that there was a specific group of money managers that decided to sell off their entire stakes in the third quarter. At the top of the heap, Ken Griffin’s Citadel Investment Group cut the biggest investment of the 700 funds watched by Insider Monkey, valued at an estimated $2.8 million in stock, and Glenn Russell Dubin’s Highbridge Capital Management was right behind this move, as the fund dumped about $2.1 million worth. These bearish behaviors are intriguing to say the least, as aggregate hedge fund interest was cut by 6 funds in the third quarter.

Let’s now review hedge fund activity in other stocks – not necessarily in the same industry as Polycom Inc (NASDAQ:PLCM) but similarly valued. These stocks are Evertec Inc (NYSE:EVTC), Cvent Inc (NYSE:CVT), Mobile Mini Inc (NASDAQ:MINI), and RBC Bearings Incorporated (NASDAQ:ROLL). This group of stocks’ market valuations are similar to PLCM’s market valuation.

As you can see these stocks had an average of 13.25 hedge funds with bullish positions and the average amount invested in these stocks was $116 million. That figure was $310 million in PLCM’s case. Evertec Inc (NYSE:EVTC) is the most popular stock in this table. On the other hand RBC Bearings Incorporated (NASDAQ:ROLL) is the least popular one with only 8 bullish hedge fund positions. Polycom Inc (NASDAQ:PLCM) is tied with EVTC as the most popular stock in this group. This is a positive signal that makes PLCM worth a closer look.