Is Lands’ End, Inc. (LE) A Good Stock To Buy?

Since Lands’ End, Inc. (NASDAQ:LE) has sustained declining sentiment from hedge fund managers, we can see that there is a sect of hedge funds that decided to sell off their positions entirely in the third quarter. At the top of the heap, Chuck Royce’s Royce & Associates sold off the largest investment of the “upper crust” of funds studied by Insider Monkey, comprising an estimated $1.6 million in stock, and Steve Cohen’s Point72 Asset Management was right behind this move, as the fund dumped about $1.2 million worth of shares.

Let’s go over hedge fund activity in other stocks – not necessarily in the same industry as Lands’ End, Inc. (NASDAQ:LE) but similarly valued. We will take a look at Kinsale Capital Group Inc (NASDAQ:KNSL), Net 1 UEPS Technologies Inc (NASDAQ:UEPS), Haynes International, Inc. (NASDAQ:HAYN), and NACCO Industries, Inc. (NYSE:NC). This group of stocks’ market caps match LE’s market cap.

As you can see these stocks had an average of 10 hedge funds with bullish positions and the average amount invested in these stocks was $68 million. That figure was $152 million in LE’s case. Net 1 UEPS Technologies Inc (NASDAQ:UEPS) is the most popular stock in this table. On the other hand Kinsale Capital Group Inc (NASDAQ:KNSL) is the least popular one with only 6 bullish hedge fund positions. Lands’ End, Inc. (NASDAQ:LE) is not the least popular stock in this group but hedge fund interest is still below average. This is a slightly negative signal and we’d rather spend our time researching stocks that hedge funds are piling on. In this regard UEPS might be a better candidate to consider taking a long position in.