Is Korn/Ferry International (KFY) A Good Stock To Buy?

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. Intriguingly, Marc Majzner’s Clearline Capital sold off the largest stake of all the investors tracked by Insider Monkey, valued at about $1.9 million in stock. Sahm Adrangi’s fund, Kerrisdale Capital, also sold off its stock, about $1.8 million worth.

Let’s go over hedge fund activity in other stocks – not necessarily in the same industry as Korn/Ferry International (NYSE:KFY) but similarly valued. We will take a look at Euronav NV Ordinary Shares (NYSE:EURN), La-Z-Boy Incorporated (NYSE:LZB), Magnetek Inc(NASDAQ:MAG), and Opus Bank (NASDAQ:OPB). This group of stocks’ market values resemble KFY’s market value.

As you can see these stocks had an average of 14 hedge funds with bullish positions and the average amount invested in these stocks was $115 million. That figure was $92 million in KFY’s case. La-Z-Boy Incorporated (NYSE:LZB) is the most popular stock in this table. On the other hand Opus Bank (NASDAQ:OPB) is the least popular one with only 10 bullish hedge fund positions. Compared to these stocks Korn/Ferry International (NYSE:KFY) is even less popular than OPB. 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