Parkway Properties Inc (PKY): Are Hedge Funds Right About This Stock?

Seeing as Parkway Properties Inc (NYSE:PKY) has experienced a declination in interest from the entirety of the hedge funds we track, logic holds that there were a few hedge funds who sold off their full holdings in the third quarter. It’s worth mentioning that Jim Simons’ Renaissance Technologies said goodbye to the biggest investment of all the hedgies tracked by Insider Monkey, totaling about $2.4 million in stock. Gavin Saitowitz and Cisco J. del Valle’s fund, Springbok Capital, also dropped its stock, about $1.6 million worth. These moves are interesting, as aggregate hedge fund interest was cut by 2 funds in the third quarter.

Let’s now take a look at hedge fund activity in other stocks – not necessarily in the same industry as Parkway Properties Inc (NYSE:PKY) but similarly valued. We will take a look at Media General, Inc. (NYSE:MEG), MKS Instruments, Inc. (NASDAQ:MKSI), Lexmark International Inc (NYSE:LXK), and Cornerstone OnDemand, Inc. (NASDAQ:CSOD). All of these stocks’ market caps match PKY’s market cap.

As you can see these stocks had an average of 22.5 hedge funds with bullish positions and the average amount invested in these stocks was $375 million. That figure was $41 million in PKY’s case. Media General, Inc. (NYSE:MEG) is the most popular stock in this table. On the other hand Lexmark International Inc (NYSE:LXK) is the least popular one with only 21 bullish hedge fund positions. Compared to these stocks Parkway Properties Inc (NYSE:PKY) is even less popular than LXK. Considering that hedge funds aren’t fond of this stock in relation to other companies analyzed in this article, it may be a good idea to analyze it in detail and understand why the smart money isn’t behind this stock. This isn’t necessarily bad news. Although it is possible that hedge funds may think the stock is overpriced and view the stock as a short candidate, they may not be very familiar with the bullish thesis. In either case more research is warranted.