Is Engility Holdings, Inc. (EGL) A Good Stock To Buy?

Since Engility Holdings, Inc. (NYSE:EGL) has faced a decline in interest from the aggregate hedge fund industry, logic holds that there exists a select few funds who sold off their positions entirely in the third quarter. Intriguingly, Phill Gross and Robert Atchinson’s Adage Capital Management dropped the biggest stake of the 700 funds studied by Insider Monkey, worth close to $0.9 million in stock. Neil Chriss’ fund, Hutchin Hill Capital, also said goodbye to its stock, about $0.6 million worth.

Let’s now take a look at hedge fund activity in other stocks similar to Engility Holdings, Inc. (NYSE:EGL). We will take a look at Insight Enterprises, Inc. (NASDAQ:NSIT), Nuveen Credit Strategies Income Fund (NYSE:JQC), AK Steel Holding Corporation (NYSE:AKS), and Ferro Corporation (NYSE:FOE). All of these stocks’ market caps resemble EGL’s market cap.

Ticker No of HFs with positions Total Value of HF Positions (x1000) Change in HF Position
NSIT 20 83759 5
JQC 7 12282 1
AKS 33 219749 1
FOE 23 238284 -5

As you can see these stocks had an average of 21 hedge funds with bullish positions and the average amount invested in these stocks was $139 million. That figure was $34 million in EGL’s case. AK Steel Holding Corporation (NYSE:AKS) is the most popular stock in this table. On the other hand Nuveen Credit Strategies Income Fund (NYSE:JQC) is the least popular one with only 7 bullish hedge fund positions. Engility Holdings, Inc. (NYSE:EGL) 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 AKS might be a better candidate to consider taking a long position in.

Disclosure: None