Is La Quinta Holdings Inc (LQ) A Good Stock To Buy?

We already know that not all hedge funds are bullish on the stock and some hedge funds actually got rid of their positions entirely. Interestingly, Eric Chen’s Antipodean Advisors got rid of the largest stake of the 700 funds watched by Insider Monkey, totaling an estimated $1.6 million in stock. Paul Tudor Jones’ fund, Tudor Investment Corp, also sold off its stock, about $0.3 million worth.

Let’s go over hedge fund activity in other stocks similar to La Quinta Holdings Inc (NYSE:LQ). We will take a look at 2U Inc (NASDAQ:TWOU), Fidelity & Guaranty Life (NYSE:FGL), Amkor Technology, Inc. (NASDAQ:AMKR), and La-Z-Boy Incorporated (NYSE:LZB). This group of stocks’ market caps match LQ’s market cap.

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 $91 million. That figure was $245 million in LQ’s case. Amkor Technology, Inc. (NASDAQ:AMKR) is the most popular stock in this table. On the other hand Fidelity & Guaranty Life (NYSE:FGL) is the least popular one with only 12 bullish hedge fund positions. La Quinta Holdings Inc (NYSE:LQ) 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 AMKR might be a better candidate to consider taking a long position in.

Disclosure: None