Should You Avoid Parkway Inc (PKY)?

Judging by the fact that Parkway Properties Inc (NYSE:PKY) has weathered declining sentiment from the aggregate hedge fund industry, we can see that there exists a select few money managers who sold off their full holdings in the third quarter. It’s worth mentioning that John Orrico’s Water Island Capital dropped the biggest stake of the “upper crust” of funds followed by Insider Monkey, totaling close to $8.7 million in stock, and Anand Parekh’s Alyeska Investment Group was right behind this move, as the fund said goodbye to about $3.4 million worth of shares.

Let’s check out 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 Granite Construction Inc. (NYSE:GVA), American Assets Trust, Inc (NYSE:AAT), Pattern Energy Group Inc (NASDAQ:PEGI), and Rice Midstream Partners LP(NYSE:RMP). This group of stocks’ market caps match PKY’s market cap.

As you can see these stocks had an average of 10 hedge funds with bullish positions and the average amount invested in these stocks was $133 million. That figure was $68 million in PKY’s case. Pattern Energy Group Inc (NASDAQ:PEGI) is the most popular stock in this table. On the other hand American Assets Trust, Inc (NYSE:AAT) is the least popular one with only 6 bullish hedge fund positions. Parkway Properties Inc (NYSE:PKY) 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 PEGI might be a better candidate to consider taking a long position in.