Is Sequential Brands Group Inc (SQBG) A Good Stock To Buy?

Seeing as Sequential Brands Group Inc (NASDAQ:SQBG) has experienced declining sentiment from hedge fund managers, logic holds that there is a sect of funds that elected to cut their full holdings in the third quarter. At the top of the heap, Robert B. Gillam’s McKinley Capital Management got rid of the largest position of all the investors studied by Insider Monkey, totaling about $2.6 million in stock, and Millennium Management, one of the 10 largest hedge funds in the world, was right behind this move, as the fund sold off about $0.3 million worth of shares.

Let’s now take a look at hedge fund activity in other stocks – not necessarily in the same industry as Sequential Brands Group Inc (NASDAQ:SQBG) but similarly valued. We will take a look at Entercom Communications Corp. (NYSE:ETM), JinkoSolar Holding Co., Ltd. (NYSE:JKS), Matrix Service Co (NASDAQ:MTRX), and Waterstone Financial, Inc. (NASDAQ:WSBF). This group of stocks’ market values are closest to SQBG’s market value.

Ticker No of HFs with positions Total Value of HF Positions (x1000) Change in HF Position
ETM 10 36117 0
JKS 5 12522 1
MTRX 15 68397 4
WSBF 15 84996 2

As you can see these stocks had an average of 11.25 hedge funds with bullish positions and the average amount invested in these stocks was $51 million. That figure was $41 million in SQBG’s case. Matrix Service Co (NASDAQ:MTRX) is the most popular stock in this table. On the other hand JinkoSolar Holding Co., Ltd. (NYSE:JKS) is the least popular one with only 5 bullish hedge fund positions. Sequential Brands Group Inc (NASDAQ:SQBG) 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 MTRX might be a better candidate to consider taking a long position in.

Disclosure: None