Is Verisk Analytics, Inc. (VRSK) A Good Stock To Buy?

Due to the fact that Verisk Analytics, Inc. (NASDAQ:VRSK) has witnessed a decline in interest from the entirety of the hedge funds we track, we can see that there is a sect of hedgies that decided to sell off their entire stakes heading into Q4. It’s worth mentioning that James Parsons’ Junto Capital Management sold off the largest investment of the 700 funds monitored by Insider Monkey, valued at close to $38.2 million in stock. Barry Dargan’s fund, Intermede Investment Partners, also dropped its stock, about $30.4 million worth. These bearish behaviors are important to note, as total hedge fund interest dropped by 2 funds heading into Q4.

Let’s also examine hedge fund activity in other stocks similar to Verisk Analytics, Inc. (NASDAQ:VRSK). We will take a look at Potash Corp./Saskatchewan (USA) (NYSE:POT), SBA Communications Corporation (NASDAQ:SBAC), McCormick & Company, Incorporated (NYSE:MKC), and Spectra Energy Partners, LP (NYSE:SEP). This group of stocks’ market caps match VRSK’s market cap.

As you can see these stocks had an average of 23 hedge funds with bullish positions and the average amount invested in these stocks was $696 million. That figure was $592 million in VRSK’s case. SBA Communications Corporation (NASDAQ:SBAC) is the most popular stock in this table. On the other hand Spectra Energy Partners, LP (NYSE:SEP) is the least popular one with only 9 bullish hedge fund positions. Verisk Analytics, Inc. (NASDAQ:VRSK) 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 SBAC might be a better candidate to consider a long position in.

Disclosure: None