Is Nuance Communications Inc. (NUAN) 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. It’s worth mentioning that Peter Muller’s PDT Partners sold off the biggest investment of the “upper crust” of funds studied by Insider Monkey, totaling close to $6.7 million in stock, and Daniel S. Och’s OZ Management was right behind this move, as the fund cut about $3.9 million worth of shares.

Let’s check out hedge fund activity in other stocks similar to Nuance Communications Inc. (NASDAQ:NUAN). We will take a look at DCP Midstream Partners, LP (NYSE:DPM), Urban Outfitters, Inc. (NASDAQ:URBN), Curtiss-Wright Corp. (NYSE:CW), and Teradata Corporation (NYSE:TDC). This group of stocks’ market valuations resemble NUAN’s market valuation.

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 $222 million. That figure was $570 million in NUAN’s case. Urban Outfitters, Inc. (NASDAQ:URBN) is the most popular stock in this table. On the other hand DCP Midstream Partners, LP (NYSE:DPM) is the least popular one with only 8 bullish hedge fund positions. Compared to these stocks Nuance Communications Inc. (NASDAQ:NUAN) 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.

Disclosure: None