Outerwall Inc (OUTR): Are Hedge Funds Right About This Stock?

Due to the fact that Outerwall Inc (NASDAQ:OUTR) has experienced bearish sentiment from hedge fund managers, logic holds that there were a few fund managers that decided to sell off their positions entirely last quarter. It’s worth mentioning that Jeffrey Altman’s Owl Creek Asset Management sold off the biggest position of all the hedgies tracked by Insider Monkey, totaling an estimated $26.6 million in call options., and James Dondero’s Highland Capital Management was right behind this move, as the fund dumped about $19 million worth. These bearish behaviors are interesting, as aggregate hedge fund interest was cut by 2 funds last quarter.

Let’s check out hedge fund activity in other stocks similar to Outerwall Inc (NASDAQ:OUTR). These stocks are Meritor Inc (NYSE:MTOR), McDermott International (NYSE:MDR), InfraREIT Inc (NYSE:HIFR), and Nortek Inc (NASDAQ:NTK). This group of stocks’ market caps resemble OUTR’s market cap.

As you can see these stocks had an average of 19.75 hedge funds with bullish positions and the average amount invested in these stocks was $254 million. That figure was $388 million in OUTR’s case. Meritor Inc (NYSE:MTOR) is the most popular stock in this table. On the other hand Nortek Inc (NASDAQ:NTK) is the least popular one with only 14 bullish hedge fund positions. Compared to these stocks Outerwall Inc (NASDAQ:OUTR) is more popular among hedge funds. Considering that hedge funds are fond of this stock in relation to its market cap peers, it may be a good idea to analyze it in detail and potentially include it in your portfolio.