Is Sabra Health Care REIT Inc (SBRA) A Good Stock To Buy?

Judging by the fact that Sabra Health Care REIT Inc (NASDAQ:SBRA) has experienced a declination in interest from the smart money, it’s easy to see that there lies a certain “tier” of funds who sold off their positions entirely in the third quarter. At the top of the heap, Nick Niell’s Arrowgrass Capital Partners said goodbye to the biggest position of the “upper crust” of funds watched by Insider Monkey, totaling an estimated $3.2 million in stock, and Arthur Wrubel’s Wesley Capital Management was right behind this move, as the fund cut about $2.1 million worth of shares. These moves are important to note, as total hedge fund interest dropped by 4 funds in the third quarter.

Let’s now review hedge fund activity in other stocks similar to Sabra Health Care REIT Inc (NASDAQ:SBRA). These stocks are Compania de Minas Buenaventura SA (ADR) (NYSE:BVN), Nexstar Broadcasting Group, Inc. (NASDAQ:NXST), Magellan Health Services Inc (NASDAQ:MGLN), and Virgin America Inc (NASDAQ:VA). This group of stocks’ market caps are similar to Sabra Health Care REIT Inc (NASDAQ:SBRA)’s market cap.

As you can see, these stocks had an average of 20 hedge funds with bullish positions and the average amount invested in these stocks was $347 million. That figure was $62 million in Sabra Health Care REIT Inc (NASDAQ:SBRA)’s case. Nexstar Broadcasting Group, Inc. (NASDAQ:NXST) is the most popular stock in this table. On the other hand, Compania de Minas Buenaventura SA (ADR) (NYSE:BVN) is the least popular one with only 7 bullish hedge fund positions. Sabra Health Care REIT Inc (NASDAQ:SBRA) 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, Nexstar Broadcasting Group, Inc. (NASDAQ:NXST) might be a better candidate to consider a long position.