Is Fossil Group Inc (FOSL) a Good Stock to Buy?

Now that we’ve mentioned the most bullish investors, let’s also take a look at some funds that cashed in their entire stakes in the stock during the third quarter. It’s worth mentioning that Ricky Sandler’s Eminence Capital cashed in the largest investment of all the investors monitored by Insider Monkey, valued at an estimated $61 million in stock. Joel Greenblatt’s fund, Gotham Asset Management, also cut its stock, about $16.1 million worth.

Let’s go over hedge fund activity in other stocks similar to Fossil Group Inc (NASDAQ:FOSL). These stocks are Seaspan Corporation (NYSE:SSW), Community Health Systems (NYSE:CYH), La Quinta Holdings Inc (NYSE:LQ), and 2U Inc (NASDAQ:TWOU). This group of stocks’ market valuations are similar to FOSL’s market valuation.

As you can see these stocks had an average of 18 funds with bullish positions and the average amount invested in these stocks was $153 million. That figure was $119 million in FOSL’s case. Community Health Systems (NYSE:CYH) is the most popular stock in this table, while Seaspan Corporation (NYSE:SSW) is the least popular one with only seven investors holding shares. Fossil Group Inc (NASDAQ:FOSL) 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 Community Health Systems (NYSE:CYH) might be a better candidate to consider taking a long position in.

Disclosure: none