Is Coach, Inc. (COH) A Good Stock To Buy?

Seeing as Coach, Inc. (NYSE:COH) has witnessed a declination in interest from hedge fund managers, we can see that there were a few money managers that decided to sell off their entire stakes last quarter. Interestingly, Gilchrist Berg’s Water Street Capital cut the biggest position of the “upper crust” of funds tracked by Insider Monkey, worth close to $17.3 million in call options.. Mike Masters’s fund, Masters Capital Management, also said goodbye to its call options., about $10.5 million worth of shares. These transactions are intriguing to say the least, as aggregate hedge fund interest was cut by 8 funds last quarter.

Let’s now take a look at hedge fund activity in other stocks similar to Coach, Inc. (NYSE:COH). We will take a look at ANSYS, Inc. (NASDAQ:ANSS), IHS Inc. (NYSE:IHS), Polaris Industries Inc. (NYSE:PII), and Unum Group (NYSE:UNM). All of these stocks’ market caps match Coach, Inc. (NYSE:COH)’s market cap.

Ticker No of HFs with positions Total Value of HF Positions (x1000) Change in HF Position
ANSS 20 428268 3
IHS 25 874968 6
PII 20 401145 0
UNM 28 364047 0

As you can see, these stocks had an average of 23 hedge funds with bullish positions and the average amount invested in these stocks was $517 million. That figure was $429 million in Coach, Inc. (NYSE:COH)’s case. Unum Group (NYSE:UNM) is the most popular stock in this table. On the other hand, ANSYS, Inc. (NASDAQ:ANSS) is the least popular one with only 20 bullish hedge fund positions. Coach, Inc. (NYSE:COH) 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, Unum Group (NYSE:UNM) might be a better candidate to consider a long position.