Is Salem Media Group Inc (SALM) A Good Stock To Buy?

Earlier we told you that the aggregate hedge fund interest in the stock was unchanged and we view this as a negative development. Even though there weren’t any hedge funds dumping their holdings during the third quarter, there weren’t any hedge funds initiating brand new positions. This indicates that hedge funds, at the very best, perceive this stock as dead money and they haven’t identified any viable catalysts that can attract investor attention.

Let’s now take a look at hedge fund activity in other stocks similar to Salem Media Group Inc (NASDAQ:SALM). We will take a look at Silvercrest Asset Management Group Inc (NASDAQ:SAMG), Ruby Tuesday, Inc. (NYSE:RT), Simulations Plus, Inc. (NASDAQ:SLP), and SandRidge Permian Trust (NYSE:PER). This group of stocks’ market caps are similar to SALM’s market cap.

As you can see these stocks had an average of 6 hedge funds with bullish positions and the average amount invested in these stocks was $10 million. That figure was $9 million in SALM’s case. Ruby Tuesday, Inc. (NYSE:RT) is the most popular stock in this table. On the other hand SandRidge Permian Trust (NYSE:PER) is the least popular one with only 1 bullish hedge fund positions. Salem Media Group Inc (NASDAQ:SALM) 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 RT might be a better candidate to consider taking a long position in.