Is GrubHub Inc (GRUB) A Good Stock To Buy?

As aggregate interest increased, key money managers have jumped into GrubHub Inc (NYSE:GRUB) headfirst. Columbus Circle Investors, managed by Principal Global Investors, initiated the largest position in GrubHub Inc (NYSE:GRUB). Columbus Circle Investors had $15.5 million invested in the company at the end of the quarter. Jim Simons’s Renaissance Technologies also made a $9.8 million investment in the stock during the quarter. The other funds with new positions in the stock are Ken Griffin’s Citadel Investment Group, Mark Broach’s Manatuck Hill Partners, and Steve Cohen’s Point72 Asset Management.

Let’s now review hedge fund activity in other stocks similar to GrubHub Inc (NYSE:GRUB). These stocks are F.N.B. Corp (NYSE:FNB), Hudson Pacific Properties Inc (NYSE:HPP), PIMCO Dynamic Credit Income Fund (NYSE:PCI), and Rackspace Hosting, Inc. (NYSE:RAX). This group of stocks’ market valuations are similar to GRUB’s market valuation.

As you can see these stocks had an average of 16 hedge funds with bullish positions and the average amount invested in these stocks was $302 million. That figure was a whooping $1.11 billion in GRUB’s case. Rackspace Hosting, Inc. (NYSE:RAX) is the most popular stock in this table. On the other hand PIMCO Dynamic Credit Income Fund (NYSE:PCI) is the least popular one with only 3 bullish hedge fund positions. GrubHub Inc (NYSE:GRUB) 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 RAX might be a better candidate to consider a long position.

Disclosure: none.