Is Microchip Technology Inc. (MCHP) A Good Stock To Buy?

As aggregate interest increased, key money managers were breaking ground themselves. Andor Capital Management, managed by Daniel Benton, established the biggest position in Microchip Technology Inc. (NASDAQ:MCHP). Andor Capital Management had $8.6 million invested in the company at the end of the quarter. George Hall’s Clinton Group also made an $5.8 million investment in the stock during the quarter. The following funds were also among the new MCHP investors: Glenn Russell Dubin’s Highbridge Capital Management, Paul Hondros’ AlphaOne Capital Partners, and Matthew Tewksbury’s Stevens Capital Management.

Let’s now take a look at hedge fund activity in other stocks similar to Microchip Technology Inc. (NASDAQ:MCHP). We will take a look at Delhaize Group (ADR) (NYSE:DEG), Tripadvisor Inc (NASDAQ:TRIP), Harris Corporation (NYSE:HRS), and Celanese Corporation (NYSE:CE). This group of stocks’ market valuations are similar to MCHP’s market valuation.

As you can see these stocks had an average of 29.25 hedge funds with bullish positions and the average amount invested in these stocks was $619 million. That figure was $152 million in MCHP’s case. Tripadvisor Inc (NASDAQ:TRIP) is the most popular stock in this table. On the other hand Delhaize Group (ADR) (NYSE:DEG) is the least popular one with only 5 bullish hedge fund positions. Microchip Technology Inc. (NASDAQ:MCHP) 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 TRIP might be a better candidate to consider a long position.