Is Chuy’s Holdings Inc (CHUY) A Good Stock To Buy?

As one would reasonably expect, specific money managers were leading the bulls’ herd. Citadel Investment Group  created the most valuable position in Chuy’s Holdings Inc (NASDAQ:CHUY). Citadel Investment Group had $2.4 million invested in the company at the end of the quarter. PEAK6 Capital Management also made a $1.7 million investment in the stock during the quarter. The other funds with brand new CHUY positions are Matthew Tewksbury’s Stevens Capital Management, Paul Tudor Jones’ Tudor Investment Corp, and D. E. Shaw’s D E Shaw, one of the largest hedge funds in the world.

Let’s now take a look at hedge fund activity in other stocks – not necessarily in the same industry as Chuy’s Holdings Inc (NASDAQ:CHUY) but similarly valued. We will take a look at Citizens, Inc. (NYSE:CIA), FB Financial Corp(NYSE:FBK), Blucora Inc (NASDAQ:BCOR), and Career Education Corp. (NASDAQ:CECO). This group of stocks’ market valuations are similar to CHUY’s market valuation.

As you can see these stocks had an average of 14 hedge funds with bullish positions and the average amount invested in these stocks was $46 million. That figure was $27 million in CHUY’s case. Blucora Inc (NASDAQ:BCOR) is the most popular stock in this table. On the other hand Citizens, Inc. (NYSE:CIA) is the least popular one with only 6 bullish hedge fund positions. Chuy’s Holdings Inc (NASDAQ:CHUY) 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 BCOR might be a better candidate to consider taking a long position in.

Disclosure: None