Is Grand Canyon Education Inc (LOPE) A Good Stock To Buy?

Page 2 of 2

Judging by the fact that Grand Canyon Education Inc (NASDAQ:LOPE) has encountered no change in interest from the entirety of the hedge funds we track, we look out for funds that slashed their full holdings by the end of the third quarter. Interestingly, Joel Greenblatt’s Gotham Asset Management cashed in the largest investment of all the investors monitored by Insider Monkey, comprising close to $0.7 million in stock, and Ken Griffin’s Citadel Investment Group was right behind this move, as the fund cut about $0.6 million worth of LOPE shares.

Let’s now review hedge fund activity in other stocks – not necessarily in the same industry as Grand Canyon Education Inc (NASDAQ:LOPE) but similarly valued. We will take a look at Rowan Companies PLC (NYSE:RDC), Masonite International Corp (NYSE:DOOR), CVB Financial Corp. (NASDAQ:CVBF), and Old National Bancorp (NYSE:ONB). This group of stocks’ market valuations resemble LOPE’s market valuation.

Ticker No of HFs with positions Total Value of HF Positions (x1000) Change in HF Position
RDC 26 412625 2
DOOR 21 339628 -6
CVBF 7 5253 7
ONB 9 28142 0

As you can see these stocks had an average of 16 hedge funds with bullish positions and the average amount invested in these stocks was $196 million. That figure was $133 million in LOPE’s case. Rowan Companies PLC (NYSE:RDC) is the most popular stock in this table. On the other hand CVB Financial Corp. (NASDAQ:CVBF) is the least popular one with only 7 bullish hedge fund positions. Grand Canyon Education Inc (NASDAQ:LOPE) 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 RDC might be a better candidate to consider taking a long position in.

Disclosure: None

Page 2 of 2