Is Select Comfort Corp. (SCSS) A Good Stock To Buy?

Because Select Comfort Corp. (NASDAQ:SCSS) has witnessed declining sentiment from the aggregate hedge fund industry, it’s safe to say that there was a specific group of hedgies that elected to cut their positions entirely in the third quarter. It’s worth mentioning that Steve Cohen’s Point72 Asset Management said goodbye to the biggest position of all the hedgies monitored by Insider Monkey, worth an estimated $24.6 million in stock, and Lee Munder’s Lee Munder Capital Group was right behind this move, as the fund cut about $10.9 million worth of shares. These moves are interesting, as aggregate hedge fund interest fell by 4 funds in the third quarter.

Let’s check out hedge fund activity in other stocks similar to Select Comfort Corp. (NASDAQ:SCSS). We will take a look at John Bean Technologies Corporation (NYSE:JBT), Innospec Inc. (NASDAQ:IOSP), Omnicell, Inc. (NASDAQ:OMCL), and The Navigators Group, Inc (NASDAQ:NAVG). This group of stocks’ market caps are closest to SCSS’s market cap.

As you can see these stocks had an average of 17 hedge funds with bullish positions and the average amount invested in these stocks was $101 million, compared to $139 million in SCSS’s case. John Bean Technologies Corporation (NYSE:JBT) is the most popular stock in this table with a total of 19 long positions, while The Navigators Group, Inc (NASDAQ:NAVG) is the least popular one. Compared to these stocks Select Comfort Corp. (NASDAQ:SCSS) is more popular among hedge funds. Considering that hedge funds are fond of this stock in relation to its market cap peers, it may be a good idea to analyze it in detail and potentially include it in your portfolio.