Is PC Connection, Inc. (CNXN) A Good Stock To Buy?

As aggregate interest increased, key hedge funds were leading the bulls’ herd. Citadel Investment Group, led by Ken Griffin, created the most outsized position in PC Connection, Inc. (NASDAQ:CNXN). Citadel Investment Group had $0.6 million invested in the company at the end of the quarter. Peter Algert and Kevin Coldiron’s Algert Coldiron Investors also made a $0.3 million investment in the stock during the quarter.

Let’s check out hedge fund activity in other stocks similar to PC Connection, Inc. (NASDAQ:CNXN). We will take a look at Renren Inc (NYSE:RENN), SunCoke Energy Partners LP (NYSE:SXCP), Greenhill & Co., Inc. (NYSE:GHL), and New Media Investment Group Inc (NYSE:NEWM). All of these stocks’ market caps resemble CNXN’s market cap.

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 $45 million. That figure was $61 million in CNXN’s case. New Media Investment Group Inc (NYSE:NEWM) is the most popular stock in this table. On the other hand SunCoke Energy Partners LP (NYSE:SXCP) is the least popular one with only three bullish hedge fund positions. PC Connection, Inc. (NASDAQ:CNXN) 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 New Media Investment Group might be a better candidate to consider taking a long position in.

Disclosure: none