Is Align Technology, Inc. (ALGN) A Good Stock To Buy?

Now, key hedge funds have jumped into Align Technology, Inc. (NASDAQ:ALGN) headfirst. Lone Pine Capital, assembled the biggest position in Align Technology, Inc. (NASDAQ:ALGN) having $228.5 million invested in the company at the end of the quarter. Ben Levine, Andrew Manuel and Stefan Renold’s LMR Partners also initiated a $6.4 million position during the quarter. The other funds with brand new ALGN positions are Louis Navellier’s Navellier & Associates, Benjamin A. Smith’s Laurion Capital Management, and Ken Griffin’s Citadel Investment Group.

Let’s now review hedge fund activity in other stocks similar to Align Technology, Inc. (NASDAQ:ALGN). These stocks are CIT Group Inc. (NYSE:CIT), Lamar Advertising Co (NASDAQ:LAMR), Signet Jewelers Ltd. (NYSE:SIG), and BorgWarner Inc. (NYSE:BWA). This group of stocks’ market values are closest to ALGN’s market value.

As you can see these stocks had an average of 29 hedge funds with bullish positions and the average amount invested in these stocks was $1.06 billion. That figure was $589 million in ALGN’s case. Signet Jewelers Ltd. (NYSE:SIG) is the most popular stock in this table. On the other hand Lamar Advertising Co (NASDAQ:LAMR) is the least popular one with only 22 bullish hedge fund positions. Align Technology, Inc. (NASDAQ:ALGN) 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 SIG might be a better candidate to consider a long position.

Disclosure: none.