Is MarketAxess Holdings Inc. (MKTX) A Good Stock To Buy?

We already know that not all hedge funds are bullish on the stock and some hedge funds actually sold off their positions entirely. Intriguingly, Benjamin A. Smith’s Laurion Capital Management sold off the largest stake of the 700 funds followed by Insider Monkey, comprising about $11.6 million in stock, and Ben Levine, Andrew Manuel and Stefan Renold’s LMR Partners was right behind this move, as the fund dumped about $3.7 million worth of shares.

Let’s now review hedge fund activity in other stocks similar to MarketAxess Holdings Inc. (NASDAQ:MKTX). These stocks are Herbalife Ltd. (NYSE:HLF), Empresa Nacional de Electricidad S.A. (NYSE:EOCC), CBOE Holdings, Inc (NASDAQ:CBOE), and Fortinet Inc (NASDAQ:FTNT). This group of stocks’ market valuations resemble MKTX’s market valuation.

As you can see these stocks had an average of 26 hedge funds with bullish positions and the average amount invested in these stocks was $1.04 billion. That figure was $123 million in MKTX’s case. Herbalife Ltd. (NYSE:HLF) is the most popular stock in this table. On the other hand Empresa Nacional de Electricidad S.A. (NYSE:EOCC) is the least popular one with only 11 bullish hedge fund positions. MarketAxess Holdings Inc. (NASDAQ:MKTX) 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 HLF might be a better candidate to consider taking a long position in.

Disclosure: None