Is MGE Energy, Inc. (MGEE) a Good Buy?

Now, some big names were breaking ground themselves. Millennium Management, managed by Israel Englander, created the largest position in MGE Energy, Inc. (NASDAQ:MGEE). Millennium Management had $3 million invested in the company at the end of the quarter. Ken Griffin’s Citadel Investment Group also made a $1 million investment in the stock during the quarter. The only other fund with a new position in the stock is John Overdeck and David Siegel’s Two Sigma Advisors.

Let’s check out hedge fund activity in other stocks similar to MGE Energy, Inc. (NASDAQ:MGEE). These stocks are Simmons First National Corporation (NASDAQ:SFNC), Select Medical Holdings Corporation (NYSE:SEM), Prothena Corporation PLC (NASDAQ:PRTA), and Third Point Reinsurance Ltd (NYSE:TPRE). This group of stocks’ market caps are closest to MGEE’s market cap.

As you can see these stocks had an average of 15.25 hedge funds with bullish positions and the average amount invested in these stocks was $207 million. That figure was $18 million in MGEE’s case. Select Medical Holdings Corporation (NYSE:SEM) is the most popular stock in this table. On the other hand Simmons First National Corporation (NASDAQ:SFNC) is the least popular one with only 5 bullish hedge fund positions. MGE Energy, Inc. (NASDAQ:MGEE) 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 SEM might be a better candidate to consider a long position.