Is ProAssurance Corporation (PRA) a Good Stock To Buy?

Consequently, some big names have jumped into ProAssurance Corporation (NYSE:PRA) headfirst. Stevens Capital Management, led by Matthew Tewksbury, initiated the biggest position in ProAssurance Corporation (NYSE:PRA). Stevens Capital Management had $0.3 million invested in the company at the end of the quarter. David Costen Haley’s HBK Investments also initiated a $0.3 million position during the quarter. The only other fund with a new position in the stock is Glenn Russell Dubin’s Highbridge Capital Management.

Let’s now review hedge fund activity in other stocks – not necessarily in the same industry as ProAssurance Corporation (NYSE:PRA) but similarly valued. These stocks are NorthWestern Corp (NYSE:NWE), MFA Financial, Inc. (NYSE:MFA), Brinker International, Inc. (NYSE:EAT), and Sunstone Hotel Investors Inc (NYSE:SHO). All of these stocks’ market caps are similar to PRA’s market cap.

Ticker No of HFs with positions Total Value of HF Positions (x1000) Change in HF Position
NWE 6 37152 -2
MFA 11 54202 -1
EAT 22 163128 -2
SHO 7 22255 -2

As you can see these stocks had an average of 20 funds with bullish positions and the average amount invested in these stocks was $69 million. That figure was $90 million in PRA’s case. Brinker International, Inc. (NYSE:EAT) is the most popular stock in this table. On the other hand NorthWestern Corp (NYSE:NWE) is the least popular one with only six bullish hedge fund positions. ProAssurance Corporation (NYSE:PRA) 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 Brinker International, Inc. (NYSE:EAT) might be a better candidate to consider taking a long position in.

Disclosure: none