Is Nelnet, Inc. (NNI) A Good Stock To Buy?

Seeing as Nelnet, Inc. (NYSE:NNI) has experienced bearish sentiment from the aggregate hedge fund industry, we can see that there lies a certain “tier” of hedgies that slashed their entire stakes in the third quarter. Interestingly, Israel Englander’s Millennium Management dropped the biggest stake of the “upper crust” of funds monitored by Insider Monkey, worth close to $1.5 million in stock, and Porter Collins, Daniel Moses, and Vincent Daniel’s Seawolf Capital was right behind this move, as the fund dropped about $1.1 million worth of shares.

Let’s also examine hedge fund activity in other stocks similar to Nelnet, Inc. (NYSE:NNI). We will take a look at Herman Miller, Inc. (NASDAQ:MLHR), Sohu.com Inc (NASDAQ:SOHU), Alexander & Baldwin Holdings Inc (NYSE:MATX), and Cooper-Standard Holdings Inc (NYSE:CPS). This group of stocks’ market valuations are similar to NNI’s market valuation.

As you can see these stocks had an average of 16.25 hedge funds with bullish positions and the average amount invested in these stocks was $248 million. That figure was $52 million in NNI’s case. Cooper-Standard Holdings Inc (NYSE:CPS) is the most popular stock in this table. On the other hand Alexander & Baldwin Holdings Inc (NYSE:MATX) is the least popular one with only 15 bullish hedge fund positions. Compared to these stocks Nelnet, Inc. (NYSE:NNI) is even less popular than MATX. 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.

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