Is AGL Resources Inc. (GAS) A Good Stock To Buy?

As aggregate interest increased, some big names have been driving this bullishness. Magnetar Capital, managed by Alec Litowitz and Ross Laser, assembled the largest position in AGL Resources Inc. (NYSE:GAS). Magnetar Capital had $61.6 million invested in the company at the end of the quarter. John Orrico’s Water Island Capital also initiated a $24.9 million position during the quarter. The other funds with brand new GAS positions are Millennium Management Subsidiary’s Green Arrow Capital Management, Stuart J. Zimmer’s Zimmer Partners, and Jacob Gottlieb’s Visium Asset Management.

Let’s also examine hedge fund activity in other stocks similar to AGL Resources Inc. (NYSE:GAS). These stocks are Gildan Activewear Inc (USA) (NYSE:GIL), Comerica Incorporated (NYSE:CMA), Santander Consumer USA Holdings Inc (NYSE:SC), and Varian Medical Systems, Inc. (NYSE:VAR). This group of stocks’ market caps matches AGL Resources Inc. (NYSE:GAS)’s market cap.

As you can see, these stocks had an average of 30 hedge funds with bullish positions and the average amount invested in these stocks was $616 million. That figure was $528 million in AGL Resources Inc. (NYSE:GAS)’s case. Comerica Incorporated (NYSE:CMA) is the most popular stock in this table. On the other hand, Gildan Activewear Inc (USA) (NYSE:GIL) is the least popular one with only 19 bullish hedge fund positions. AGL Resources Inc. (NYSE:GAS) 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, Comerica Incorporated (NYSE:CMA) might be a better candidate to consider a long position.