Is Star Bulk Carriers Corp. (SBLK) A Good Stock To Buy?

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Because Star Bulk Carriers Corp. (NASDAQ:SBLK) has witnessed bearish sentiment from the smart money, it’s safe to say that there were a few hedgies that slashed their positions entirely by the end of the third quarter. Intriguingly, John M. Angelo and Michael L. Gordon’s Angelo Gordon & Co got rid of the biggest stake of the “upper crust” of funds monitored by Insider Monkey, totaling about $5.1 million in stock. Charles Lemonides’ fund, Valueworks LLC, also dropped its stock, about $1 million worth of shares.

Let’s now take a look at hedge fund activity in other stocks similar to Star Bulk Carriers Corp. (NASDAQ:SBLK). We will take a look at Tabula Rasa HealthCare Inc (NASDAQ:TRHC), Hill International Inc (NYSE:HIL), Exa Corp (NASDAQ:EXA), and KongZhong Corporation(ADR) (NASDAQ:KZ). All of these stocks’ market caps are closest to SBLK’s market cap.

Ticker No of HFs with positions Total Value of HF Positions (x1000) Change in HF Position
TRHC 6 13360 6
HIL 8 29666 -1
EXA 6 22085 3
KZ 3 6615 0

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 $18 million. That figure was $163 million in SBLK’s case. Hill International Inc (NYSE:HIL) is the most popular stock in this table. On the other hand KongZhong Corporation(ADR) (NASDAQ:KZ) is the least popular one with only 3 bullish hedge fund positions. Star Bulk Carriers Corp. (NASDAQ:SBLK) is not the most popular stock in this group but hedge fund interest is still above average. This is a slightly positive signal but we’d rather spend our time researching stocks that hedge funds are piling on. In this regard HIL might be a better candidate to consider taking a long position in.

Disclosure: none.

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