Is Alon USA Energy, Inc. (ALJ) a Good Stock to Buy?

We already know that not all hedge funds are bullish on the stock and some hedge funds actually cut their positions entirely. At the top of the heap, Jacob Gottlieb’s Visium Asset Management cut the biggest stake of all the investors tracked by Insider Monkey, totaling close to $7.2 million in stock, and Daniel S. Och’s OZ Management was right behind this move, as the fund cut about $3.8 million worth of shares.

Let’s check out hedge fund activity in other stocks – not necessarily in the same industry as Alon USA Energy, Inc. (NYSE:ALJ) but similarly valued. These stocks are Natera Inc (NASDAQ:NTRA), John B. Sanfilippo & Son, Inc. (NASDAQ:JBSS), Middlesex Water Company (NASDAQ:MSEX), and Encore Capital Group, Inc. (NASDAQ:ECPG). This group of stocks’ market values match ALJ’s market value.

Ticker No of HFs with positions Total Value of HF Positions (x1000) Change in HF Position
NTRA 15 51121 0
JBSS 14 81916 0
MSEX 7 30579 -2
ECPG 6 69117 0

As you can see these stocks had an average of 11 funds with bullish positions and the average amount invested in these stocks was $58 million. That figure was $58 million in ALJ’s case. Natera Inc (NASDAQ:NTRA) is the most popular stock in this table. On the other hand Encore Capital Group, Inc. (NASDAQ:ECPG) is the least popular one with only six funds holding shares. In Alon USA Energy, Inc. (NYSE:ALJ), the number of funds with long positions is the same as in Natera Inc (NASDAQ:NTRA)’s case. Given that the stock is more popular than the majority of companies in the table, it may be a good idea to analyze it in more detail and potentially include it in your portfolio.

Disclosure: none