Is El Pollo LoCo Holdings Inc (LOCO) A Good Stock To Buy?

Seeing as El Pollo LoCo Holdings Inc (NASDAQ:LOCO) has experienced bearish sentiment from the entirety of the hedge funds we track, it’s easy to see that there is a sect of money managers that decided to sell off their entire stakes in the third quarter. It’s worth mentioning that Ken Griffin’s Citadel Investment Group sold off the largest position of all the investors watched by Insider Monkey, valued at close to $0.5 million in call options, and Mark Coe’s Coe Capital Management was right behind this move, as the fund sold off about $0.3 million worth of shares.

Let’s now take a look at hedge fund activity in other stocks – not necessarily in the same industry as El Pollo LoCo Holdings Inc (NASDAQ:LOCO) but similarly valued. We will take a look at WMIH Corp (OTCMKTS:WMIH), Lion Biotechnologies Inc (NASDAQ:LBIO), ReTailMeNot Inc (NASDAQ:SALE), and PTC Therapeutics, Inc. (NASDAQ:PTCT). All of these stocks’ market caps are closest to LOCO’s market cap.

As you can see these stocks had an average of 20 hedge funds with bullish positions and the average amount invested in these stocks was $105 million. That figure was $14 million in LOCO’s case. WMIH Corp (OTCMKTS:WMIH) is the most popular stock in this table. On the other hand PTC Therapeutics, Inc. (NASDAQ:PTCT) is the least popular one with only 15 bullish hedge fund positions. Compared to these stocks El Pollo LoCo Holdings Inc (NASDAQ:LOCO) is even less popular than PTCT. Considering that hedge funds aren’t fond of this stock in relation to other companies analyzed in this article, it may be a good idea to analyze it in detail and understand why the smart money isn’t behind this stock.

Disclosure: None