United Online, Inc. (UNTD): Are Hedge Funds Right About This Stock?

Because United Online, Inc. (NASDAQ:UNTD) has witnessed bearish sentiment from the smart money, logic holds that there lies a certain “tier” of fund managers who sold off their positions entirely in the third quarter. Intriguingly, Robert Rodriguez and Steven Romick’s First Pacific Advisors LLC dumped the biggest position of the 700 funds monitored by Insider Monkey, worth an estimated $0.7 million in stock, and Paul Tudor Jones’s Tudor Investment Corp was right behind this move, as the fund said goodbye to about $0.3 million worth. These bearish behaviors are intriguing to say the least, as aggregate hedge fund interest dropped by 2 funds in the third quarter.

Let’s go over hedge fund activity in other stocks similar to United Online, Inc. (NASDAQ:UNTD). We will take a look at Contango Oil & Gas Company (NYSEAMEX:MCF), Enzo Biochem, Inc. (NYSE:ENZ), Information Services Group, Inc. (NASDAQ:III), and Rosetta Stone Inc (NYSE:RST). All of these stocks’ market caps are closest to UNTD’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 $38 million. That figure was $30 million in UNTD’s case. Rosetta Stone Inc (NYSE:RST) is the most popular stock in this table with 12 funds reporting long positions. On the other hand Information Services Group, Inc. (NASDAQ:III) is the least popular one. Compared to these stocks United Online, Inc. (NASDAQ:UNTD) is more popular among hedge funds. Considering that hedge funds are fond of this stock in relation to its market cap peers, it may be a good idea to analyze it in detail and potentially include it in your portfolio.