Is Select Comfort Corp. (SCSS) A Good Stock To Buy?

Now that we’ve mentioned the most bullish investors, let’s also take a look at some funds that cut their entire stakes in the stock during the third quarter. It’s worth mentioning that David Costen Haley’s HBK Investments cut the biggest position of the “upper crust” of funds monitored by Insider Monkey, comprising an estimated $1.7 million in stock, and Ken Griffin’s Citadel Investment Group was right behind this move, as the fund dumped about $0.8 million worth of Select Comfort Corp. (NASDAQ:SCSS) shares.

Let’s also examine hedge fund activity in other stocks similar to Select Comfort Corp. (NASDAQ:SCSS). We will take a look at Mercury Systems Inc (NASDAQ:MRCY), Luminex Corporation (NASDAQ:LMNX), State Auto Financial (NASDAQ:STFC), and Scientific Games Corp (NASDAQ:SGMS). All of these stocks’ market caps are closest to SCSS’s market cap.

As you can see these stocks had an average of 14 hedge funds with bullish positions and the average amount invested in these stocks was $145 million. That figure was $72 million in SCSS’s case. Scientific Games Corp (NASDAQ:SGMS) is the most popular stock in this table. On the other hand State Auto Financial (NASDAQ:STFC) is the least popular one with only 4 bullish hedge fund positions. Select Comfort Corp. (NASDAQ:SCSS) 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 SGMS might be a better candidate to consider taking a long position in.

Disclosure: none.