Is Huntington Ingalls Industries Inc (HII) A Good Stock To Buy?

As industrywide interest jumped, specific money managers were leading the bulls’ herd. Clinton Group, managed by George Hall, created the most outsized position in Huntington Ingalls Industries Inc (NYSE:HII). Clinton Group had $10.3 million invested in the company at the end of the quarter. Glenn Russell Dubin’s Highbridge Capital Management also initiated a $4.3 million position during the quarter. The following funds were also among the new HII investors: Ken Griffin’s Citadel Investment Group, Stanley Shopkorn and Douglas Day’s Hilltop Park Associates, and Simon Sadler’s Segantii Capital.

Let’s check out hedge fund activity in other stocks similar to Huntington Ingalls Industries Inc (NYSE:HII). These stocks are Rite Aid Corporation (NYSE:RAD), Varian Medical Systems, Inc. (NYSE:VAR), Quintiles Transnational Holdings Inc (NYSE:Q), and UGI Corp (NYSE:UGI). This group of stocks’ market caps are similar to HII’s market cap.

As you can see these stocks had an average of 30 hedge funds with bullish positions and the average amount invested in these stocks was $764 million. That figure was $601 million in HII’s case. Rite Aid Corporation (NYSE:RAD) is the most popular stock in this table. On the other hand Varian Medical Systems, Inc. (NYSE:VAR) is the least popular one with only 15 bullish hedge fund positions. Huntington Ingalls Industries Inc (NYSE:HII) 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 RAD might be a better candidate to consider a long position.

Disclosure: None