Is MGE Energy, Inc. (MGEE) A Good Stock to Buy?

Judging by the fact that MGE Energy, Inc. (NASDAQ:MGEE) has faced a decline in interest from the smart money, logic holds that there were a few hedge funds that slashed their entire stakes heading into Q4. It’s worth mentioning that Israel Englander’s Millennium Management cashed in the largest stake of the 700 funds studied by Insider Monkey, valued at close to $1 million in stock, and Ken Griffin’s Citadel Investment Group was right behind this move, as the fund dropped about $0.7 million worth of shares.

Let’s also examine hedge fund activity in other stocks similar to MGE Energy, Inc. (NASDAQ:MGEE). We will take a look at Great Western Bancorp Inc (NYSE:GWB), TerraForm Power Inc (NASDAQ:TERP), Badger Meter, Inc. (NYSE:BMI), and New Relic Inc (NYSE:NEWR). This group of stocks’ market valuations are similar to MGEE’s market valuation.

As you can see these stocks had an average of 16 hedge funds with bullish positions and the average amount invested in these stocks was $187 million. That figure was $17 million in MGEE’s case. TerraForm Power Inc (NASDAQ:TERP) is the most popular stock in this table. On the other hand Great Western Bancorp Inc (NYSE:GWB) is the least popular one with only 11 bullish hedge fund positions. Compared to these stocks MGE Energy, Inc. (NASDAQ:MGEE) is even less popular than GWB. Considering that hedge funds aren’t fond of this stock in relation to other companies analyzed in this article, it may be a good idea to analyze it in detail and understand why the smart money isn’t behind this stock.

Disclosure: None