Is Cimarex Energy Co (XEC) A Good Stock To Buy?

As one would reasonably expect, key hedge funds have jumped into Cimarex Energy Co (NYSE:XEC) headfirst. Alyeska Investment Group, managed by Anand Parekh, established the biggest position in Cimarex Energy Co (NYSE:XEC). Alyeska Investment Group had $26.5 million invested in the company at the end of the quarter. D E Shaw also made a $5.8 million investment in the stock during the quarter. The other funds with brand new XEC positions are Robert Vollero and Gentry T. Beach’s Vollero Beach Capital Partners, Jacob Gottlieb’s Visium Asset Management, and GLG Partners.

Let’s also examine hedge fund activity in other stocks similar to Cimarex Energy Co (NYSE:XEC). We will take a look at Bed Bath & Beyond Inc. (NASDAQ:BBBY), Linear Technology Corporation (NASDAQ:LLTC), Sealed Air Corp (NYSE:SEE), and Eastman Chemical Company (NYSE:EMN). All of these stocks’ market caps are closest to Cimarex Energy Co (NYSE:XEC)’s market cap.

As you can see, these stocks had an average of 35 hedge funds with bullish positions and the average amount invested in these stocks was $1.41 billion. That figure was $1.30 million in Cimarex Energy Co (NYSE:XEC)’s case. Sealed Air Corp (NYSE:SEE) is the most popular stock in this table. On the other hand, Linear Technology Corporation (NASDAQ:LLTC) is the least popular one with only 20 bullish hedge fund positions. Cimarex Energy Co (NYSE:XEC) 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, Sealed Air Corp (NYSE:SEE) might be a better candidate to consider a long position.