Is Gigamon Inc (GIMO) A Good Stock To Buy?

Judging by the fact that Gigamon Inc (NYSE:GIMO) has faced a declination in interest from the entirety of the hedge funds we track, we can see that there were a few money managers that decided to sell off their full holdings last quarter. At the top of the heap, Anand Parekh’s Alyeska Investment Group cut the biggest investment of all the hedgies followed by Insider Monkey, totaling about $20.8 million in stock. Dmitry Balyasny’s fund, Balyasny Asset Management, also dropped its stock, about $4.4 million worth of shares. These moves are important to note, as total hedge fund interest stayed the same (this is a bearish signal in our experience).

Let’s go over hedge fund activity in other stocks – not necessarily in the same industry as Gigamon Inc (NYSE:GIMO) but similarly valued. These stocks are Kulicke and Soffa Industries Inc. (NASDAQ:KLIC), Textura Corp (NYSE:TXTR), AAR Corp. (NYSE:AIR), and CenterState Banks Inc (NASDAQ:CSFL). This group of stocks’ market values is closest to Gigamon Inc (NYSE:GIMO)’s market value.

As you can see, these stocks had an average of 15 hedge funds with bullish positions and the average amount invested in these stocks was $59 million. That figure was $105 million in Gigamon Inc (NYSE:GIMO)’s case. AAR Corp. (NYSE:AIR) is the most popular stock in this table. On the other hand, Textura Corp (NYSE:TXTR) is the least popular one with only 6 bullish hedge fund positions. Compared to these stocks, Gigamon Inc (NYSE:GIMO) is more popular among hedge funds. Considering that hedge funds are fond of this stock in relation to its market cap peers, it may be a good idea to analyze it in detail and potentially include it in your portfolio.