Is Xilinx, Inc. (XLNX) A Good Stock To Buy?

Because Xilinx, Inc. (NASDAQ:XLNX) has faced a declination in interest from the smart money, we can see that there was a specific group of funds who sold off their positions entirely heading into Q4. It’s worth mentioning that Dmitry Balyasny’s Balyasny Asset Management said goodbye to the biggest stake of all the hedgies followed by Insider Monkey, worth close to $11 million in stock. Daniel S. Och’s fund, OZ Management, also dropped its stock, about $10.5 million worth. These bearish behaviors are important to note, as total hedge fund interest was cut by 2 funds heading into Q4.

Let’s check out hedge fund activity in other stocks – not necessarily in the same industry as Xilinx, Inc. (NASDAQ:XLNX) but similarly valued. We will take a look at KeyCorp (NYSE:KEY), Laboratory Corp. of America Holdings (NYSE:LH), Dr. Reddy’s Laboratories Limited (ADR) (NYSE:RDY), and ServiceNow Inc (NYSE:NOW). This group of stocks’ market valuations are similar to XLNX’s market valuation.

As you can see these stocks had an average of 29.5 hedge funds with bullish positions and the average amount invested in these stocks was $1037 million. That figure was $1201 million in XLNX’s case. Laboratory Corp. of America Holdings (NYSE:LH) is the most popular stock in this table. On the other hand Dr. Reddy’s Laboratories Limited (ADR) (NYSE:RDY) is the least popular one with only 14 bullish hedge fund positions. Xilinx, Inc. (NASDAQ:XLNX) 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 LH might be a better candidate to consider a long position.