Is Alon USA Energy, Inc. (ALJ) A Good Stock To Buy?

How do we determine whether Alon USA Energy, Inc. (NYSE:ALJ) makes for a good investment at the moment? We analyze the sentiment of a select group of the very best investors in the world, who spend immense amounts of time and resources studying companies. They may not always be right (no one is), but data shows that their consensus long positions have historically outperformed the market when we adjust for known risk factors.

Alon USA Energy, Inc. investors should be aware of an increase in hedge fund interest in recent months. At the end of this article we will also compare ALJ to other stocks including World Wrestling Entertainment, Inc. (NYSE:WWE), EP Energy Corp (NYSE:EPE), and HFF, Inc. (NYSE:HF) to get a better sense of its popularity.

With all of this in mind, let’s take a gander at the key action regarding Alon USA Energy, Inc. (NYSE:ALJ).

Hedge fund activity in Alon USA Energy, Inc. (NYSE:ALJ)

At the end of the third quarter, a total of 23 of the hedge funds tracked by Insider Monkey held long positions in this stock, a change of 28% from the second quarter. With the smart money’s sentiment swirling, there exists a few noteworthy hedge fund managers who were increasing their stakes considerably (or already accumulated large positions).

According to publicly available hedge fund and institutional investor holdings data compiled by Insider Monkey, D E Shaw holds the number one position in Alon USA Energy, Inc. (NYSE:ALJ). D E Shaw has a $70.7 million position in the stock, comprising 0.1% of its 13F portfolio. The second most bullish fund manager is Point72 Asset Management, led by Steve Cohen, holding a $26 million position; 0.2% of its 13F portfolio is allocated to the company. Other hedge funds and institutional investors that hold long positions comprise Israel Englander’s Millennium Management, Jim Simons’ Renaissance Technologies and George Soros’ Soros Fund Management.