Stag Industrial Inc (STAG): Are Hedge Funds Right About This Stock?

Earlier we told you that the aggregate hedge fund interest in the stock was unchanged and we view this as a negative development. Even though there weren’t any hedge funds dumping their holdings during the third quarter, there weren’t any hedge funds initiating brand new positions either. This indicates that hedge funds, at the very best, perceive this stock as dead money and they haven’t identified any viable catalysts that can attract investor attention.

Let’s now take a look at hedge fund activity in other stocks similar to Stag Industrial Inc (NYSE:STAG). We will take a look at Impax Laboratories Inc (NASDAQ:IPXL), Brady Corp (NYSE:BRC), VeriFone Systems Inc (NYSE:PAY), and Wix.Com Ltd (NASDAQ:WIX). All of these stocks’ market caps are similar to STAG’s market cap.

As you can see these stocks had an average of 18 hedge funds with bullish positions and the average amount invested in these stocks was $243 million. That figure was $60 million in STAG’s case. Wix.Com Ltd (NASDAQ:WIX) is the most popular stock in this table. On the other hand Impax Laboratories Inc (NASDAQ:IPXL) is the least popular one with only 16 bullish hedge fund positions. Compared to these stocks Stag Industrial Inc (NYSE:STAG) is even less popular than IPXL. 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.

Disclosure: none.