Is Check Point Software Technologies Ltd. (CHKP) A Good Stock To Buy?

As industrywide interest jumped, key money managers have been driving this bullishness. TAM Capital Management, managed by Tsachy Mishal, initiated the largest position in Check Point Software Technologies Ltd. (NASDAQ:CHKP). The fund had $42.7 million invested in the company at the end of the quarter. Dmitry Balyasny’s Balyasny Asset Management also initiated a $40 million position during the quarter. The other funds with brand new CHKP positions are Clifton S. Robbins’s Blue Harbour Group, Sahm Adrangi’s Kerrisdale Capital, and Ken Griffin’s Citadel Investment Group.

Let’s go over hedge fund activity in other stocks similar to Check Point Software Technologies Ltd. (NASDAQ:CHKP). We will take a look at W.W. Grainger, Inc. (NYSE:GWW), Loews Corporation (NYSE:L), Magna International Inc. (USA) (NYSE:MGA), and United Continental Holdings Inc (NYSE:UAL). This group of stocks’ market caps are closest to CHKP’s market cap.

As you can see these stocks had an average of 32 hedge funds with bullish positions and the average amount invested in these stocks was $1.17 billion. That figure was $1.01 billion in CHKP’s case. United Continental Holdings Inc (NYSE:UAL) is the most popular stock in this table. On the other hand W.W. Grainger, Inc. (NYSE:GWW) is the least popular one with only 17 bullish hedge fund positions. Check Point Software Technologies Ltd. (NASDAQ:CHKP) is not the most popular stock in this group but hedge fund interest is still above average. This is a slightly positive signal but we’d rather spend our time researching stocks that hedge funds are piling on. In this regard UAL might be a better candidate to consider a long position.

Disclosure: none.