Is Wageworks Inc (WAGE) A Good Stock To Buy?

It’s worth mentioning that Glenn Russell Dubin’s Highbridge Capital Management said goodbye to the biggest investment of the 700 funds watched by Insider Monkey, worth about $1.5 million in stock. Chao Ku’s fund, Nine Chapters Capital Management, also said goodbye to its stock, about $0.7 million worth. These transactions are intriguing to say the least, as aggregate hedge fund interest stayed the same (this is a bearish signal in our experience).

Let’s go over hedge fund activity in other stocks similar to Wageworks Inc (NYSE:WAGE). We will take a look at Astoria Financial Corp (NYSE:AF), Gentherm Inc (NASDAQ:THRM), Fairchild Semiconductor Intl Inc (NYSE:FCS), and SeaWorld Entertainment Inc (NYSE:SEAS). This group of stocks’ market values are closest to WAGE’s market value.

As you can see these stocks had an average of 19 hedge funds with bullish positions and the average amount invested in these stocks was $183 million. That figure was $65 million in WAGE’s case. SeaWorld Entertainment Inc (NYSE:SEAS) is the most popular stock in this table. On the other hand Fairchild Semiconductor Intl Inc (NYSE:FCS) is the least popular one with only 14 bullish hedge fund positions. Wageworks Inc (NYSE:WAGE) 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 SEAS might be a better candidate to consider a long position.