Is Zebra Technologies Corp. (ZBRA) a Good Stock To Buy?

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Seeing as Zebra Technologies Corp. (NASDAQ:ZBRA) has weathered declining sentiment from the entirety of the hedge funds we track, we can see that there lies a certain “tier” of fund managers that decided to sell off their positions entirely in the third quarter. At the top of the heap, Bain Capital’s Brookside Capital sold off the biggest stake of all the hedgies followed by Insider Monkey, comprising an estimated $33.2 million in stock. Francis Cueto’s fund, Asturias Capital, also sold off its stock, about $7.5 million worth.

Let’s also examine hedge fund activity in other stocks – not necessarily in the same industry as Zebra Technologies Corp. (NASDAQ:ZBRA) but similarly valued. We will take a look at Buffalo Wild Wings (NASDAQ:BWLD), Science Applications International Corp (NYSE:SAIC), United Bankshares, Inc. (NASDAQ:UBSI), and Sunstone Hotel Investors Inc (NYSE:SHO). This group of stocks’ market caps are similar to ZBRA’s market cap.

Ticker No of HFs with positions Total Value of HF Positions (x1000) Change in HF Position
BWLD 29 369089 4
SAIC 15 80466 -1
UBSI 8 38600 2
SHO 7 22255 -2

As you can see these stocks had an average of 15 funds with bullish positions and the average amount invested in these stocks was $128 million. That figure was $534 million in ZBRA’s case. Buffalo Wild Wings (NASDAQ:BWLD) is the most popular stock in this table. On the other hand Sunstone Hotel Investors Inc (NYSE:SHO) is the least popular one with only seven investors holding shares. Zebra Technologies Corp. (NASDAQ:ZBRA) 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 Buffalo Wild Wings (NASDAQ:BWLD) might be a better candidate to consider taking a long position in.

Disclosure: None

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