Is Scorpio Bulkers Inc (SALT) a Good Stock to Buy?

Due to the fact that Scorpio Bulkers Inc (NYSE:SALT) has experienced declining sentiment from the entirety of the hedge funds we track, it’s easy to see that there were a few fund managers that slashed their full holdings heading into Q4. Intriguingly, Ken Griffin’s Citadel Investment Group dropped the biggest position of the “upper crust” of funds tracked by Insider Monkey, comprising an estimated $0.1 million in call options. Joel Greenblatt’s fund, Gotham Asset Management, also dropped its stock.

Let’s also examine hedge fund activity in other stocks – not necessarily in the same industry as Scorpio Bulkers Inc (NYSE:SALT) but similarly valued. We will take a look at Franklin Covey Co. (NYSE:FC), Electrum Special Acquisition Corp (NASDAQ:ELECU), Lantheus Holdings Inc (NASDAQ:LNTH), and Celadon Group, Inc. (NYSE:CGI). This group of stocks’ market caps are closest to SALT’s market cap.

As you can see these stocks had an average of 12 hedge funds with bullish positions and the average amount invested in these stocks was $42 million. That figure was $47 million in SALT’s case. Electrum Special Acquisition Corp (NASDAQ:ELECU) is the most popular stock in this table. On the other hand Franklin Covey Co. (NYSE:FC) is the least popular one with only 8 bullish hedge fund positions. Scorpio Bulkers Inc (NYSE:SALT) 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 ELECU might be a better candidate to consider taking a long position in.

Disclosure: None