Is FireEye Inc (FEYE) a Good Stock to Buy?

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Consequently, key hedge funds have been driving this bullishness. Alyeska Investment Group initiated the largest position in FireEye Inc (NASDAQ:FEYE). Josh Resnick’s Jericho Capital Asset Management, also initiated a $21.8 million position during the quarter. The other funds with new positions in the stock are Israel Englander’s Millennium Management, Mike Masters’ Masters Capital Management, and Philippe Jabre’s Jabre Capital Partners.

Let’s now review hedge fund activity in other stocks similar to FireEye Inc (NASDAQ:FEYE). We will take a look at J.C. Penney Company, Inc. (NYSE:JCP), Beacon Roofing Supply, Inc. (NASDAQ:BECN), MFA Financial, Inc. (NYSE:MFA), and Primerica, Inc. (NYSE:PRI). All of these stocks’ market caps are similar to FEYE’s market cap.

Ticker No of HFs with positions Total Value of HF Positions (x1000) Change in HF Position
JCP 32 459927 4
BECN 33 429386 -7
MFA 11 54202 -1
PRI 17 256653 5

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 $300 million. That figure was $284 million in FEYE’s case. Beacon Roofing Supply, Inc. (NASDAQ:BECN) is the most popular stock in this table. On the other hand MFA Financial, Inc. (NYSE:MFA) is the least popular one with only 11 bullish hedge fund positions. FireEye Inc (NASDAQ:FEYE) 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 Beacon Roofing Supply, Inc. (NASDAQ:BECN) might be a better candidate to consider a long position.

Disclosure: None


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