Is Maxim Integrated Products Inc. (MXIM) A Good Stock To Buy Right Now?

Because Maxim Integrated Products Inc. (NASDAQ:MXIM) has faced declining sentiment from hedge fund managers, we can see that there were a few hedgies that decided to sell off their entire stakes by the end of the third quarter. At the top of the heap, billionaire Steve Cohen’s Point72 Asset Management said goodbye to the biggest investment of the 700 funds tracked by Insider Monkey, worth about $49.9 million in stock, and Jacob Gottlieb’s Visium Asset Management was right behind this move, as the fund sold out about $3.5 million worth of stock.

Let’s check out hedge fund activity in other stocks similar to Maxim Integrated Products Inc. (NASDAQ:MXIM). These stocks are Cheniere Energy Partners LP (NYSEAMEX:CQP), Mobileye NV (NYSE:MBLY), International Flavors & Fragrances Inc (NYSE:IFF), and First Data Corp (NYSE:FDC). This group of stocks’ market valuations are similar to MXIM’s market valuation.

Ticker No of HFs with positions Total Value of HF Positions (x1000) Change in HF Position
CQP 5 33390 -1
MBLY 30 465006 5
IFF 16 269994 -4
FDC 38 661363 3

As you can see these stocks had an average of 22.25 hedge funds with bullish positions and the average amount invested in these stocks was $357 million. That figure was $533 million in MXIM’s case. First Data Corp (NYSE:FDC) is the most popular stock in this table. On the other hand Cheniere Energy Partners LP (NYSEAMEX:CQP) is the least popular one with only 5 bullish hedge fund positions. Maxim Integrated Products Inc. (NASDAQ:MXIM) 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 FDC might be a better candidate to consider a long position.