Is Overstock.com, Inc. (OSTK) A Good Stock To Buy?

We view hedge fund activity in the stock unfavorable, but in this case there was only a single hedge fund selling its entire position: Citadel Investment Group. One hedge fund selling its entire position doesn’t always imply a bearish intent. Theoretically a hedge fund may decide to sell a promising position in order to invest the proceeds in a more promising idea. However, we don’t think this is the case in this case because only one of the 800+ hedge funds tracked by Insider Monkey identified as a viable investment and initiated a position in the stock (that fund was Citadel Investment Group).

Let’s go over hedge fund activity in other stocks similar to Overstock.com, Inc. (NASDAQ:OSTK). We will take a look at Myers Industries, Inc. (NYSE:MYE), Axcelis Technologies Inc (NASDAQ:ACLS), Fly Leasing Ltd(ADR) (NYSE:FLY), and Audentes Therapeutics Inc (NASDAQ:BOLD). This group of stocks’ market values match OSTK’s market value.

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 $84 million. That figure was $84 million in OSTK’s case. Audentes Therapeutics Inc (NASDAQ:BOLD) is the most popular stock in this table. On the other hand Fly Leasing Ltd(ADR) (NYSE:FLY) is the least popular one with only 8 bullish hedge fund positions. Overstock.com, Inc. (NASDAQ:OSTK) is not the most popular stock in this group but hedge fund interest is still above average. This is a slightly positive signal but we’d rather spend our time researching stocks that hedge funds are piling on. In this regard BOLD might be a better candidate to consider taking a long position in.

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