Is Cypress Semiconductor Corporation (CY) a Good Stock To Buy?

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As aggregate interest increased, key hedge funds have been driving this bullishness. Quentec Asset Management, led by Ken Hahn, initiated the most outsized position in Cypress Semiconductor Corporation (NASDAQ:CY). Quentec Asset Management had $5.6 million invested in the company at the end of the quarter. Dmitry Balyasny’s Balyasny Asset Management also made a $5.2 million investment in the stock during the quarter. The other funds with brand new CY positions are Philippe Jabre’s Jabre Capital Partners, Warren Lammert’s Granite Point Capital, and John Fichthorn’s Dialectic Capital Management.

Let’s go over hedge fund activity in other stocks – not necessarily in the same industry as Cypress Semiconductor Corporation (NASDAQ:CY) but similarly valued. These stocks are Transocean LTD (NYSE:RIG), Take-Two Interactive Software, Inc. (NASDAQ:TTWO), Huntsman Corporation (NYSE:HUN), and TC Pipelines, LP (NYSE:TCP). This group of stocks’ market caps are similar to CY’s market cap.

Ticker No of HFs with positions Total Value of HF Positions (x1000) Change in HF Position
RIG 35 457059 3
TTWO 46 1228866 -1
HUN 42 563476 4
TCP 6 17667 0

As you can see these stocks had an average of 32 funds with bullish positions and the average amount invested in these stocks was $567 million. That figure was $367 million in CY’s case. Take-Two Interactive Software, Inc. (NASDAQ:TTWO) is the most popular stock in this table, while TC Pipelines, LP (NYSE:TCP) is the least popular one with only 6 bullish hedge fund positions. Cypress Semiconductor Corporation (NASDAQ:CY) 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 TTWO might be a better candidate to consider taking a long position in.

Disclosure: none

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