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Is Capella Education Company (CPLA) A Good Stock To Buy?

Due to the fact that Capella Education Company (NASDAQ:CPLA) has witnessed a declining sentiment from the entirety of the hedge funds we track, logic holds that there was a specific group of funds who sold off their positions entirely last quarter. Interestingly, Paul Tudor Jones’s Tudor Investment Corp sold off the biggest investment of the 700 funds monitored by Insider Monkey, valued at about $0.7 million in stock. George Hall’s fund, Clinton Group, also dumped its stock, about $0.3 million worth of shares. These bearish behaviors are interesting, as aggregate hedge fund interest was cut by 2 funds last quarter.

Let’s go over hedge fund activity in other stocks – not necessarily in the same industry as Capella Education Company (NASDAQ:CPLA) but similarly valued. These stocks are Aegion Corp – Class A (NASDAQ:AEGN), PGT, Inc. (NASDAQ:PGTI), Synergy Pharmaceuticals Inc (NASDAQ:SGYP), and Veritiv Corp (NYSE:VRTV). This group of stocks’ market caps matches Capella Education Company (NASDAQ:CPLA)’s market cap.

Ticker No of HFs with positions Total Value of HF Positions (x1000) Change in HF Position
AEGN 15 38415 2
PGTI 11 82952 -7
SGYP 31 134639 0
VRTV 9 122125 -1

As you can see, these stocks had an average of 17 hedge funds with bullish positions and the average amount invested in these stocks was $95 million. That figure was $124 million in Capella Education Company (NASDAQ:CPLA)’s case. Synergy Pharmaceuticals Inc (NASDAQ:SGYP) is the most popular stock in this table. On the other hand, Veritiv Corp (NYSE:VRTV) is the least popular one with only 9 bullish hedge fund positions. Capella Education Company (NASDAQ:CPLA) 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, Synergy Pharmaceuticals Inc (NASDAQ:SGYP) might be a better candidate to consider a long position.

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