Is KLX Inc (KLXI) A Good Stock To Buy?

Judging by the fact that KLX Inc (NASDAQ:KLXI) has faced a decline in interest from the entirety of the hedge funds we track, logic holds that there was a specific group of hedge funds who were dropping their positions entirely last quarter. Intriguingly, Richard S. Meisenberg’s ACK Asset Management dumped the largest stake of the 700 funds tracked by Insider Monkey, valued at close to $5.4 million in stock. John Overdeck and David Siegel’s fund, Two Sigma Advisors, also sold off its stock, about $1.8 million worth. These transactions are intriguing to say the least, as total hedge fund interest was cut by 1 funds last quarter.

Let’s check out hedge fund activity in other stocks similar to KLX Inc (NASDAQ:KLXI). These stocks are Coeur d’Alene Mines Corporation (NYSE:CDE), Itron, Inc. (NASDAQ:ITRI), Financial Engines Inc (NASDAQ:FNGN), and Magellan Health Services Inc (NASDAQ:MGLN). This group of stocks’ market values are similar to KLXI’s market value.

As you can see these stocks had an average of 19.25 hedge funds with bullish positions and the average amount invested in these stocks was $246 million. That figure was $423 million in KLXI’s case. Coeur d’Alene Mines Corporation (NYSE:CDE) is the most popular stock in this table. On the other hand Financial Engines Inc (NASDAQ:FNGN) is the least popular one with only 13 bullish hedge fund positions. KLX Inc (NASDAQ:KLXI) 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 CDE might be a better candidate to consider a long position.

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