Is Shopify Inc (SHOP) A Good Stock To Buy?

Now, some big names were leading the bulls’ herd. Citadel Investment Group, initiated the biggest position in Shopify Inc (NYSE:SHOP). Citadel Investment Group had $29.5 million invested in the company at the end of the quarter. Adam Wolfberg and Steven Landry’s EastBay Asset Management also made an $18.8 million investment in the stock during the quarter. The other funds with new positions in the stock are James Crichton’s Hitchwood Capital Management, Principal Global Investors’ Columbus Circle Investors, and Christopher Lyle’s SCGE Management.

Let’s now take a look at hedge fund activity in other stocks similar to Shopify Inc (NYSE:SHOP). We will take a look at Hilltop Holdings Inc. (NYSE:HTH), INC Research Holdings Inc (NASDAQ:INCR), Northstar Realty Finance Corp. (NYSE:NRF), and Boyd Gaming Corporation (NYSE:BYD). All of these stocks’ market caps resemble SHOP’s market cap.

As you can see these stocks had an average of 25 hedge funds with bullish positions and the average amount invested in these stocks was $346 million. That figure was $450 million in SHOP’s case. Northstar Realty Finance Corp. (NYSE:NRF) is the most popular stock in this table. On the other hand Hilltop Holdings Inc. (NYSE:HTH) is the least popular one with only 15 bullish hedge fund positions. Shopify Inc (NYSE:SHOP) 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 NRF might be a better candidate to consider a long position.

Disclosure: None