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

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As one would reasonably expect, some big names were leading the bulls’ herd. Balyasny Asset Management, managed by Dmitry Balyasny, initiated the most valuable position in La-Z-Boy Incorporated (NYSE:LZB). As reported in its latest 13F filing, the fund had $8.5 million invested in the company at the end of the quarter. Steve Pei’s Gratia Capital also made a $3.5 million investment in the stock during the quarter. The other funds with brand new LZB positions are John Overdeck and David Siegel’s Two Sigma Advisors, Peter Rathjens, Bruce Clarke and John Campbell’s Arrowstreet Capital, and Joel Greenblatt’s Gotham Asset Management.

Let’s now review hedge fund activity in other stocks similar to La-Z-Boy Incorporated (NYSE:LZB). These stocks are Air Methods Corp (NASDAQ:AIRM), OneBeacon Insurance Group, Ltd. (NYSE:OB), Advanced Micro Devices, Inc. (NYSE:AMD), and Descartes Systems Group (USA) (NASDAQ:DSGX). All of these stocks’ market caps are similar to LZB’s market cap.

Ticker No of HFs with positions Total Value of HF Positions (x1000) Change in HF Position
AIRM 18 83041 -3
OB 12 11984 0
AMD 11 6470 -4
DSGX 4 26054 -1

As you can see these stocks had an average of 11 hedge funds with bullish positions and the average amount invested in these stocks was $32 million. That figure in LZB’s case considerably exceeds the average and stands at $84 million. Air Methods Corp (NASDAQ:AIRM) is the most popular stock in this table, while Descartes Systems Group (USA) (NASDAQ:DSGX) is the least popular one with only 4 bullish hedge fund positions. La-Z-Boy Incorporated (NYSE:LZB) shares the first place with AIRM and, considering the fact that both companies have attracted a similar amount of the hedge funds’ money, we believe both stocks warrant further research to find the most suitable candidate for a long position.

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