Is Green Mountain Coffee Roasters Inc. (GMCR) A Good Stock To Buy?

Judging by the fact that Green Mountain Coffee Roasters Inc. (NASDAQ:GMCR) has faced bearish sentiment from the aggregate hedge fund industry, we can see that there was a specific group of fund managers that decided to sell off their full holdings last quarter. Interestingly, Edward Goodnow’s Goodnow Investment Group said goodbye to the biggest investment of the 700 funds monitored by Insider Monkey, worth about $41.6 million in stock. Jim Simons’s fund, Renaissance Technologies, also sold off its stock, about $41.1 million worth. These transactions are important to note, as total hedge fund interest dropped by 13 funds last quarter.

Let’s now review hedge fund activity in other stocks similar to Green Mountain Coffee Roasters Inc. (NASDAQ:GMCR). These stocks are New York Community Bancorp, Inc. (NYSE:NYCB), Verisign, Inc. (NASDAQ:VRSN), SEI Investments Company (NASDAQ:SEIC), and Coach, Inc. (NYSE:COH). This group of stocks’ market caps match GMCR’s market cap.

As you can see these stocks had an average of 24.75 hedge funds with bullish positions and the average amount invested in these stocks was $754 million. That figure was $466 million in GMCR’s case. Verisign, Inc. (NASDAQ:VRSN) is the most popular stock in this table. On the other hand New York Community Bancorp, Inc. (NYSE:NYCB) is the least popular one with only 18 bullish hedge fund positions. Compared to these stocks Green Mountain Coffee Roasters Inc. (NASDAQ:GMCR) is even less popular than NYCB. Considering that hedge funds aren’t fond of this stock in relation to other companies analyzed in this article, it may be a good idea to analyze it in detail and understand why the smart money isn’t behind this stock. This isn’t necessarily bad news. Although it is possible that hedge funds may think the stock is overpriced and view the stock as a short candidate, they may not be very familiar with the bullish thesis. In either case more research is warranted.