Is Allegiant Travel Company (ALGT) a Good Stock to Buy?

As aggregate interest increased, key hedge funds have been driving this bullishness. Coatue Management initiated the most outsized position in Allegiant Travel Company (NASDAQ:ALGT). Paul Orlin and Alex Porter’s Amici Capital also initiated a $4.4 million position during the third quarter. The other funds with brand new ALGT positions are John Tompkins’ Tyvor Capital, Glenn Russell Dubin’s Highbridge Capital Management, and Ken Griffin’s Citadel Investment Group.

Let’s now take a look at hedge fund activity in other stocks – not necessarily in the same industry as Allegiant Travel Company (NASDAQ:ALGT) but similarly valued. We will take a look at Sanderson Farms, Inc. (NASDAQ:SAFM), Glacier Bancorp, Inc. (NASDAQ:GBCI), Owens & Minor, Inc. (NYSE:OMI), and Globus Medical Inc (NYSE:GMED). All of these stocks’ market caps are closest to ALGT’s market cap.

As you can see these stocks had an average of 13 hedge funds with bullish positions and the average amount invested in these stocks was $135 million, compared to $225 million in ALGT’s case. Sanderson Farms, Inc. (NASDAQ:SAFM) is the most popular stock in this table. On the other hand Glacier Bancorp, Inc. (NASDAQ:GBCI) is the least popular one with only five funds holding shares. Allegiant Travel Company (NASDAQ:ALGT) has the same number of funds as the most popular stock in this table, Sanderson Farms, which suggests that it could be a good idea to analyze it in more detail and consider adding it to one’s portfolio.

Disclosure: none