RPC, Inc. (RES): Are Hedge Funds Right About This Stock?

Judging by the fact that RPC, Inc. (NYSE:RES) has faced a declination in interest from the smart money, logic holds that there exists a select few hedge funds that decided to sell off their positions entirely heading into Q4. At the top of the heap, Kyle Bass’s Hayman Advisors dropped the biggest stake of the 700 funds tracked by Insider Monkey, valued at about $14.6 million in stock. Joe DiMenna’s fund, ZWEIG DIMENNA PARTNERS, also dropped its stock, about $5.3 million worth. These transactions are important to note, as total hedge fund interest was cut by 2 funds heading into Q4.

Let’s also examine hedge fund activity in other stocks – not necessarily in the same industry as RPC, Inc. (NYSE:RES) but similarly valued. We will take a look at Crown Media Holdings, Inc (NASDAQ:CRWN), Novavax, Inc. (NASDAQ:NVAX), The Ryland Group, Inc. (NYSE:RYL), and Lexington Realty Trust (NYSE:LXP). This group of stocks’ market valuations are closest to RES’s market valuation.

As you can see these stocks had an average of 18.75 hedge funds with bullish positions and the average amount invested in these stocks was $189 million. That figure was $125 million in RES’s case. Novavax, Inc. (NASDAQ:NVAX) is the most popular stock in this table. On the other hand Crown Media Holdings, Inc (NASDAQ:CRWN) is the least popular one with only 8 bullish hedge fund positions. RPC, Inc. (NYSE:RES) is not the least popular stock in this group but hedge fund interest is still below average. This is a slightly negative signal and we’d rather spend our time researching stocks that hedge funds are piling on. In this regard NVAX might be a better candidate to consider a long position.