Is LGI Homes Inc (LGIH) 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. It’s worth mentioning that Ken Griffin’s Citadel Investment Group got rid of the biggest position of all the hedgies followed by Insider Monkey, valued at an estimated $1 million in call options. John H Lewis’ fund, Osmium Partners, also cut its stock, about $0.3 million worth.

Let’s check out hedge fund activity in other stocks similar to LGI Homes Inc (NASDAQ:LGIH). We will take a look at Orthofix International NV (NASDAQ:OFIX), PHH Corporation (NYSE:PHH), Re/Max Holdings Inc (NYSE:RMAX), and Canadian Solar Inc. (NASDAQ:CSIQ). This group of stocks’ market values are closest to LGIH’s market value.

Ticker No of HFs with positions Total Value of HF Positions (x1000) Change in HF Position
OFIX 23 231332 3
PHH 20 271332 3
RMAX 4 25202 -2
CSIQ 15 75703 -1

As you can see these stocks had an average of 15 hedge funds with bullish positions and the average amount invested in these stocks was $151 million. That figure was $55 million in LGIH’s case. Orthofix International NV (NASDAQ:OFIX) is the most popular stock in this table. On the other hand Re/Max Holdings Inc (NYSE:RMAX) is the least popular one with only 4 bullish hedge fund positions. LGI Homes Inc (NASDAQ:LGIH) 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 OFIX might be a better candidate to consider taking a long position in.

Disclosure: None