Is Public Storage (PSA) A Good Stock To Buy Right Now?

Judging by the fact that Public Storage (NYSE:PSA) has faced falling interest from the entirety of the hedge funds we track, logic holds that there lies a certain “tier” of money managers who were dropping their full holdings last quarter. At the top of the heap, Matthew Tewksbury’s Stevens Capital Management sold off the biggest stake of all the hedgies monitored by Insider Monkey, comprising close to $13.9 million in stock. Highbridge Capital Management was right behind this move, as the fund dumped about $9.1 million worth of PSA shares. These transactions are important to note, as total hedge fund interest was cut by 4 funds last quarter.

Let’s also examine hedge fund activity in other stocks – not necessarily in the same industry as Public Storage (NYSE:PSA) but similarly valued. We will take a look at Caterpillar Inc. (NYSE:CAT), Paypal Holdings Inc (NASDAQ:PYPL), General Motors Company (NYSE:GM), and Metlife Inc (NYSE:MET). This group of stocks’ market valuations resemble PSA’s market valuation.

As you can see these stocks had an average of 51 hedge funds with bullish positions and the average amount invested in these stocks was $2.79 billion. That figure was $1.01 billion in PSA’s case. Paypal Holdings Inc (NASDAQ:PYPL) is the most popular stock in this table. On the other hand Caterpillar Inc. (NYSE:CAT) is the least popular one with only 32 bullish hedge fund positions. Compared to these stocks Public Storage (NYSE:PSA) is even less popular than CAT. Considering that hedge funds aren’t fond of this stock in relation to other companies analyzed in this article, it may be a good idea to analyze it in detail and understand why the smart money isn’t behind this stock. This isn’t necessarily bad news. Although it is possible that hedge funds may think the stock is overpriced and view the stock as a short candidate, they may not be very familiar with the bullish thesis. In either case more research is warranted.

Disclosure: none.