Is Packaging Corp Of America (PKG) A Good Stock To Buy?

Consequently, specific money managers were breaking ground themselves. Laurion Capital Management initiated the biggest call position in Packaging Corp Of America (NYSE:PKG). Laurion Capital Management had $7.7 million invested in the company at the end of the quarter. Israel Englander’s Millennium Management also made a $4.2 million investment in the stock during the quarter. The other funds with brand new PKG positions are Citadel Investment Group, D E Shaw, and Paul Marshall and Ian Wace’s Marshall Wace LLP.

Let’s now take a look at hedge fund activity in other stocks – not necessarily in the same industry as Packaging Corp Of America (NYSE:PKG) but similarly valued. We will take a look at Leucadia National Corp. (NYSE:LUK), IDEX Corporation (NYSE:IEX), Taro Pharmaceutical Industries Ltd. (NYSE:TARO), and Lennox International Inc. (NYSE:LII). This group of stocks’ market values match PKG’s market value.

As you can see these stocks had an average of 18.75 hedge funds with bullish positions and the average amount invested in these stocks was $298 million. That figure was $154 million in PKG’s case. Leucadia National Corp. (NYSE:LUK) is the most popular stock in this table. On the other hand Taro Pharmaceutical Industries Ltd. (NYSE:TARO) is the least popular one with only 14 bullish hedge fund positions. Packaging Corp Of America (NYSE:PKG) 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 LUK might be a better candidate to consider for a long position.

Disclosure: None