Is ASML Holding NV (ADR) (ASML) A Good Stock To Buy?

As aggregate interest increased, some big names have jumped into ASML Holding NV (ADR) (NASDAQ:ASML) headfirst. Two Sigma Advisors, led by John Overdeck and David Siegel, created the most outsized position in ASML Holding NV (ADR) (NASDAQ:ASML). Two Sigma Advisors had $2.6 million invested in the company at the end of the third quarter. Ken Griffin’s Citadel Investment Group also made a $1.1 million investment in the stock during the quarter. The following funds were also among the new ASML investors: Mike Vranos’ Ellington and Drew Cupps’ Cupps Capital Management.

Let’s now take a look at hedge fund activity in other stocks similar to ASML Holding NV (ADR) (NASDAQ:ASML). We will take a look at 58.com Inc (ADR) (NYSE:WUBA), Gaming and Leisure Properties Inc (NASDAQ:GLPI), Leucadia National Corp. (NYSE:LUK), and Omega Healthcare Investors Inc (NYSE:OHI). All of these stocks’ market caps resemble ASML’s market cap.

Ticker No of HFs with positions Total Value of HF Positions (x1000) Change in HF Position
WUBA 23 1038149 -6
GLPI 34 879903 -6
LUK 29 800246 5
OHI 11 50369 -4

As you can see these stocks had an average of 24 hedge funds with bullish positions and the average amount invested in these stocks was $692 million. That figure was $169 million in ASML’s case. Gaming and Leisure Properties Inc (NASDAQ:GLPI) is the most popular stock in this table. On the other hand Omega Healthcare Investors Inc (NYSE:OHI) is the least popular one with only 11 bullish hedge fund positions. Compared to these stocks ASML Holding NV (ADR) (NASDAQ:ASML) is even less popular than OHI. Considering that hedge funds aren’t fond of this stock in relation to other companies analyzed in this article, it may be a good idea to analyze it in detail and understand why the smart money isn’t behind this stock.

Disclosure: None