Should You Avoid Insperity Inc (NSP)?

Now that we’ve mentioned the most bullish investors, let’s also take a look at some funds that sold off their entire stakes in the stock during the third quarter. It’s worth mentioning that Paul Marshall and Ian Wace’s Marshall Wace LLP sold off the biggest investment of all the hedgies studied by Insider Monkey, worth an estimated $12.3 million in stock. Michael R. Weisberg’s fund, Crestwood Capital Management, also dropped its stock, about $10.4 million worth.

Let’s go over hedge fund activity in other stocks similar to Insperity Inc (NYSE:NSP). These stocks are Avon Products, Inc. (NYSE:AVP), South State Corporation (NASDAQ:SSB), Cooper Tire & Rubber Company (NYSE:CTB), and LendingClub Corp (NYSE:LC). This group of stocks’ market values are similar to NSP’s market value.

Ticker No of HFs with positions Total Value of HF Positions (x1000) Change in HF Position
AVP 26 375467 1
SSB 11 46544 -3
CTB 21 142385 -1
LC 24 237509 0

As you can see these stocks had an average of 20 hedge funds with bullish positions and the average amount invested in these stocks was $200 million. That figure was $196 million in NSP’s case. Avon Products, Inc. (NYSE:AVP) is the most popular stock in this table. On the other hand South State Corporation (NASDAQ:SSB) is the least popular one with only 11 bullish hedge fund positions. Insperity Inc (NYSE:NSP) 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 AVP might be a better candidate to consider taking a long position in.

Disclosure: None