Should You Avoid Plantronics, Inc. (PLT)?

Due to the fact that Plantronics, Inc. (NYSE:PLT) has encountered declining sentiment from the aggregate hedge fund industry, it’s safe to say that there is a sect of hedge funds that slashed their entire stakes in the third quarter. Intriguingly, Alexander Medina Seaver’s Stadium Capital Management cut the largest investment of all the hedgies monitored by Insider Monkey, worth an estimated $10.8 million in stock, and Matthew Hulsizer’s PEAK6 Capital Management was right behind this move, as the fund sold off about $0.4 million worth of PLT shares.

Let’s check out hedge fund activity in other stocks similar to Plantronics, Inc. (NYSE:PLT). We will take a look at DigitalGlobe Inc (NYSE:DGI), Trex Company, Inc. (NYSE:TREX), Viavi Solutions Inc (NASDAQ:VIAV), and Nelnet, Inc. (NYSE:NNI). This group of stocks’ market valuations match PLT’s market valuation.

As you can see these stocks had an average of 15 hedge funds with bullish positions and the average amount invested in these stocks was $119 million. That figure was $49 million in PLT’s case. Viavi Solutions Inc (NASDAQ:VIAV) is the most popular stock in this table. On the other hand Nelnet, Inc. (NYSE:NNI) is the least popular one with only 9 bullish hedge fund positions. Plantronics, Inc. (NYSE:PLT) 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 VIAV might be a better candidate to consider taking a long position in.

Disclosure: none.