Is La-Z-Boy Incorporated (LZB) A Good Stock To Buy?

Since La-Z-Boy Incorporated (NYSE:LZB) has experienced bearish sentiment from the smart money, logic holds that there exists a select few funds that decided to sell off their positions entirely heading into fourth quarter. At the top of the heap, Matthew Tewksbury’s Stevens Capital Management sold off the biggest stake of the 700 funds studied by Insider Monkey, worth close to $0.7 million in call options., and Matthew Hulsizer’s PEAK6 Capital Management was right behind this move, as the fund cut about $0.4 million worth of shares.

Let’s now review hedge fund activity in other stocks similar to La-Z-Boy Incorporated (NYSE:LZB). These stocks are Renasant Corp. (NASDAQ:RNST), SkyWest, Inc. (NASDAQ:SKYW), Weis Markets, Inc. (NYSE:WMK), and Cooper-Standard Holdings Inc (NYSE:CPS). This group of stocks’ market caps are closest to LZB’s market cap.

Ticker No of HFs with positions Total Value of HF Positions (x1000) Change in HF Position
RNST 9 38642 -2
SKYW 17 55666 4
WMK 11 122560 0
CPS 18 368810 -2

As you can see these stocks had an average of 14 hedge funds with bullish positions and the average amount invested in these stocks was $146 million. That figure was $64 million in LZB’s case. Cooper-Standard Holdings Inc (NYSE:CPS) is the most popular stock in this table. On the other hand Renasant Corp. (NASDAQ:RNST) is the least popular one with only 9 bullish hedge fund positions. La-Z-Boy Incorporated (NYSE:LZB) 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 CPS might be a better candidate to consider taking a long position in.

Disclosure: None