How Meritage Homes Corp (MTH) Stacks Up Against Its Peers

We already know that not all hedge funds are bullish on the stock and some hedge funds actually said goodbye to their positions entirely. It’s worth mentioning that Solomon Kumin’s Folger Hill Asset Management said goodbye to the biggest stake of all the hedgies studied by Insider Monkey, totaling close to $1.7 million in stock, and Ken Griffin’s Citadel Investment Group was right behind this move, as the fund dumped about $0.8 million worth of shares.

Let’s now review hedge fund activity in other stocks similar to Meritage Homes Corp (NYSE:MTH). These stocks are Clovis Oncology Inc (NASDAQ:CLVS), Axovant Sciences Ltd (NYSE:AXON), BroadSoft Inc (NASDAQ:BSFT), and Capital Bank Financial Corp (NASDAQ:CBF). This group of stocks’ market valuations resemble MTH’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 $518 million. That figure was $137 million in MTH’s case. Clovis Oncology Inc (NASDAQ:CLVS) is the most popular stock in this table. On the other hand Capital Bank Financial Corp (NASDAQ:CBF) is the least popular one with only 7 bullish hedge fund positions. Meritage Homes Corp (NYSE:MTH) is not the least popular stock in this group but hedge fund interest is still below average. This is a slightly negative signal and we’d rather spend our time researching stocks that hedge funds are piling on. In this regard CLVS might be a better candidate to consider taking a long position in.

Disclosure: None