Is Domino’s Pizza, Inc. (DPZ) a Good Stock To Buy?

On the other hand, a number of funds decided to close their entire stakes in Domino’s Pizza during the third quarter. At the top of the heap, Josh Resnick’s Jericho Capital Asset Management cut the biggest position of the 700 funds monitored by Insider Monkey, comprising an estimated $22.6 million in stock, and Matthew Knauer and Mina Faltas’s Nokota Management was right behind this move, as the fund said goodbye to about $20.1 million worth of shares.

Let’s also examine hedge fund activity in other stocks similar to Domino’s Pizza, Inc. (NYSE:DPZ). These stocks are News Corp (NASDAQ:NWSA), AerCap Holdings N.V. (NYSE:AER), American Capital Agency Corp. (NASDAQ:AGNC), and Vipshop Holdings Ltd – ADR (NYSE:VIPS). This group of stocks’ market valuations are similar to DPZ’s market valuation.

As you can see these stocks had an average of 29 investors with bullish positions and the average amount invested in these stocks was $872 million, which is lower than the $1.07 billion figure in DPZ’s case. Vipshop Holdings Ltd – ADR (NYSE:VIPS) is the most popular stock in this table. On the other hand American Capital Agency Corp. (NASDAQ:AGNC) is the least popular one with only 11 funds reporting ownership of its stock. Domino’s Pizza, Inc. (NYSE:DPZ) 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 Vipshop Holdings Ltd – ADR (NYSE:VIPS) might be a better candidate to consider a long position.