Is K12 Inc. (LRN) A Good Stock To Buy?

As one would reasonably expect, some big names were breaking ground themselves. Hutchin Hill Capital, managed by Neil Chriss, created the most valuable position in K12 Inc. (NYSE:LRN). Hutchin Hill Capital had $0.6 million invested in the company at the end of the quarter. Gregory Fraser, Rudolph Kluiber, and Timothy Krochuk’s GRT Capital Partners also made a $0.2 million investment in the stock during the quarter. The only other fund with a brand new LRN position is Peter Algert and Kevin Coldiron’s Algert Coldiron Investors.

Let’s also examine hedge fund activity in other stocks similar to K12 Inc. (NYSE:LRN). We will take a look at Computer Programs & Systems, Inc. (NASDAQ:CPSI), AngioDynamics, Inc. (NASDAQ:ANGO), Chiasma Inc (NASDAQ:CHMA), and TETRA Technologies, Inc. (NYSE:TTI). This group of stocks’ market caps are similar to LRN’s market cap.

As you can see these stocks had an average of 10.5 hedge funds with bullish positions and the average amount invested in these stocks was $54 million. That figure was $59 million in LRN’s case. AngioDynamics, Inc. (NASDAQ:ANGO) is the most popular stock in this table. On the other hand Chiasma Inc (NASDAQ:CHMA) is the least popular one with only 4 bullish hedge fund positions. Compared to these stocks K12 Inc. (NYSE:LRN) 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.