Is Rex Energy Corporation (REXX) A Good Stock To Buy?

Due to the fact that Rex Energy Corporation (NASDAQ:REXX) has witnessed a declining sentiment from the smart money, logic holds that there was a specific group of fund managers that elected to cut their full holdings heading into Q4. Intriguingly, Zac Hirzel’s Hirzel Capital Management said goodbye to the largest investment of the 700 funds watched by Insider Monkey, valued at close to $29.2 million in stock. Renaissance Technologies also cut its stock, about $1 million worth of shares. These moves are important to note, as total hedge fund interest dropped by 2 funds heading into Q4.

Let’s also examine hedge fund activity in other stocks – not necessarily in the same industry as Rex Energy Corporation (NASDAQ:REXX) but similarly valued. We will take a look at Entegra Financial Corp (NASDAQ:ENFC), Lee Enterprises, Incorporated (NYSE:LEE), RedHill Biopharma Ltd – ADR (NASDAQ:RDHL), and Capstone Turbine Corporation (NASDAQ:CPST). This group of stocks’ market caps match Rex Energy Corporation (NASDAQ:REXX)’s market cap.

As you can see, these stocks had an average of 7 hedge funds with bullish positions and the average amount invested in these stocks was $17 million. That figure was $3 million in Rex Energy Corporation (NASDAQ:REXX)’s case. Lee Enterprises, Incorporated (NYSE:LEE) is the most popular stock in this table. On the other hand, Entegra Financial Corp (NASDAQ:ENFC) is the least popular one with only 4 bullish hedge fund positions. Rex Energy Corporation (NASDAQ:REXX) 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, Lee Enterprises, Incorporated (NYSE:LEE) might be a better candidate to consider a long position.