Is Scholastic Corp (SCHL) A Good Stock To Buy?

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As one would reasonably expect, key hedge funds were leading the bulls’ herd. Millennium Management, led by Israel Englander, established the largest position in Scholastic Corp (NASDAQ:SCHL). Millennium Management had $0.6 million invested in the company at the end of the quarter. John Overdeck and David Siegel’s Two Sigma Advisors also initiated a $0.3 million position during the quarter. The other funds with new positions in the stock are Alec Litowitz and Ross Laser’s Magnetar Capital and Gavin Saitowitz and Cisco J. del Valle’s Springbok Capital.

Let’s now review hedge fund activity in other stocks similar to Scholastic Corp (NASDAQ:SCHL). We will take a look at Gannett Co., Inc. (NYSE:GCI), First Financial Bancorp (NASDAQ:FFBC), Qualys Inc (NASDAQ:QLYS), and OneBeacon Insurance Group, Ltd. (NYSE:OB). This group of stocks’ market values resemble SCHL’s market value.

Ticker No of HFs with positions Total Value of HF Positions (x1000) Change in HF Position
GCI 18 65906 2
FFBC 8 27985 0
QLYS 14 182096 1
OB 10 18859 -1

As you can see these stocks had an average of 12.5 hedge funds with bullish positions and the average amount invested in these stocks was $74 million. That figure was $92 million in SCHL’s case. Gannett Co., Inc. (NYSE:GCI) is the most popular stock in this table. On the other hand First Financial Bancorp (NASDAQ:FFBC) is the least popular one with only 8 bullish hedge fund positions. Scholastic Corp (NASDAQ:SCHL) 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 GCI might be a better candidate to consider taking a long position in.

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