Is RigNet Inc (RNET) A Good Stock To Buy?

We view hedge fund activity in the stock unfavorable, but in this case there was only a single hedge fund selling its entire position: PDT Partners. One hedge fund selling its entire position doesn’t always imply a bearish intent. Theoretically a hedge fund may decide to sell a promising position in order to invest the proceeds in a more promising idea. However, we don’t think this is the case in this case because only one of the 800+ hedge funds tracked by Insider Monkey identified as a viable investment and initiated a position in the stock (that fund was Hutchin Hill Capital).

Let’s now review hedge fund activity in other stocks – not necessarily in the same industry as RigNet Inc (NASDAQ:RNET) but similarly valued. These stocks are JP Energy Partners LP (NYSE:JPEP), Macatawa Bank Corporation (NASDAQ:MCBC), TRC Companies, Inc. (NYSE:TRR), and Syndax Pharmaceuticals Inc (NASDAQ:SNDX). All of these stocks’ market caps are closest to RNET’s market cap.

As you can see these stocks had an average of 4 hedge funds with bullish positions and the average amount invested in these stocks was $15 million. That figure was $14 million in RNET’s case. TRC Companies, Inc. (NYSE:TRR) is the most popular stock in this table. On the other hand Macatawa Bank Corporation (NASDAQ:MCBC) is the least popular one with only 2 bullish hedge fund positions. Compared to these stocks RigNet Inc (NASDAQ:RNET) 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.