Is Cray Inc. (CRAY) a Good Stock to Buy?

We already know that not all hedge funds are bullish on the stock and some hedge funds actually got rid of their positions entirely. Intriguingly, Joel Greenblatt’s Gotham Asset Management got rid of the biggest position of all the hedgies tracked by Insider Monkey, comprising an estimated $15.2 million in stock, and Neil Chriss’ Hutchin Hill Capital was right behind this move, as the fund said goodbye to about $0.9 million worth of shares.

Let’s now take a look at hedge fund activity in other stocks – not necessarily in the same industry as Cray Inc. (NASDAQ:CRAY) but similarly valued. These stocks are Bottomline Technologies (NASDAQ:EPAY), Hertz Global Holdings Inc (NYSE:HRI), Advanced Accelerator Application SA(ADR) (NASDAQ:AAAP), and Gogo Inc (NASDAQ:GOGO). This group of stocks’ market values are closest to CRAY’s market value.

Ticker No of HFs with positions Total Value of HF Positions (x1000) Change in HF Position
EPAY 14 51273 3
HRI 28 469755 28
AAAP 7 138309 1
GOGO 21 183787 5

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 $211 million. That figure was $30 million in CRAY’s case. Hertz Global Holdings Inc (NYSE:HRI) is the most popular stock in this table. On the other hand Advanced Accelerator Application SA(ADR) (NASDAQ:AAAP) is the least popular one with only 7 bullish hedge fund positions. Cray Inc. (NASDAQ:CRAY) 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 HRI might be a better candidate to consider taking a long position in.

Disclosure: None