Is Cabot Microelectronics Corporation (CCMP) A Good Stock To Buy?

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Consequently, key money managers have jumped into Cabot Microelectronics Corporation (NASDAQ:CCMP) headfirst. Adage Capital Management assembled the largest position in Cabot Microelectronics Corporation (NASDAQ:CCMP). According to its latest 13F filing, the fund had $8.4 million invested in the company at the end of the quarter. Israel Englander’s Millennium Management also initiated a $2.9 million position during the quarter. The following funds were also among the new CCMP investors: Christopher Zepf and Brian Thonn’s Kingdom Ridge Capital, Peter Rathjens, Bruce Clarke and John Campbell’s Arrowstreet Capital, and John Overdeck and David Siegel’s Two Sigma Advisors.

Let’s go over hedge fund activity in other stocks – not necessarily in the same industry as Cabot Microelectronics Corporation (NASDAQ:CCMP) but similarly valued. These stocks are Consolidated Communications Holdings Inc (NASDAQ:CNSL), Builders FirstSource, Inc. (NASDAQ:BLDR), TopBuild Corp (NYSE:BLD), and Emergent Biosolutions Inc (NYSE:EBS). This group of stocks’ market values are closest to CCMP’s market value.

Ticker No of HFs with positions Total Value of HF Positions (x1000) Change in HF Position
CNSL 6 3368 0
BLDR 34 441474 1
BLD 21 182845 -5
EBS 14 135032 -3

As you can see these stocks had an average of 19 hedge funds with bullish positions and the average amount invested in these stocks was $191 million. That figure was $159 million in CCMP’s case. Builders FirstSource, Inc. (NASDAQ:BLDR) is the most popular stock in this table. On the other hand Consolidated Communications Holdings Inc (NASDAQ:CNSL) is the least popular one with only 6 bullish hedge fund positions. Cabot Microelectronics Corporation (NASDAQ:CCMP) 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 BLDR might be a better candidate to consider taking a long position in.

Disclosure: None


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