Is Incyte Corporation (INCY) A Good Stock To Buy?

As one would reasonably expect, specific money managers have jumped into Incyte Corporation (NASDAQ:INCY) headfirst. Millennium Management, managed by Israel Englander, initiated the most valuable call position in Incyte Corporation (NASDAQ:INCY). Millennium Management had $55.2 million invested in the company at the end of the quarter. John Burbank’s Passport Capital also made a $34.2 million investment in the stock during the quarter. The following funds were also among the new INCY investors: Richard Chilton’s Chilton Investment Company, Clifford Fox’s Columbus Circle Investors, and Paul Sinclair’s Blue Jay Capital Management.

Let’s go over hedge fund activity in other stocks similar to Incyte Corporation (NASDAQ:INCY). We will take a look at Sirius XM Radio Inc (NASDAQ:SIRI), KKR & Co. L.P. (NYSE:KKR), Mylan Inc. (NASDAQ:MYL), and Ross Stores, Inc. (NASDAQ:ROST). This group of stocks’ market caps matches Incyte Corporation (NASDAQ:INCY)’s market cap.

As you can see, these stocks had an average of 45 hedge funds with bullish positions and the average amount invested in these stocks was $1.43 billion. That figure was $3.23 billion in Incyte Corporation (NASDAQ:INCY)’s case. Mylan Inc. (NASDAQ:MYL) is the most popular stock in this table. On the other hand, KKR & Co. L.P. (NYSE:KKR) is the least popular one with only 30 bullish hedge fund positions. Incyte Corporation (NASDAQ:INCY) 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, Mylan Inc. (NASDAQ:MYL) might be a better candidate to consider a long position.