Is Sirius XM Holdings Inc (SIRI) A Good Stock To Buy Right Now?

Now, some big names have jumped into Sirius XM Holdings Inc (NASDAQ:SIRI) headfirst. Two Sigma Advisors, managed by John Overdeck and David Siegel, established the most outsized position in Sirius XM Holdings Inc (NASDAQ:SIRI). According to its latest 13F filing, the fund had $18.9 million invested in the company at the end of the quarter. Lee Hicks and Jan Koerner’s Park Presidio Capital also made a $16.7 million investment in the stock during the quarter. The other funds with new positions in the stock are Steve Cohen’s Point72 Asset Management, James Dondero’s Highland Capital Management, and Joel Greenblatt’s Gotham Asset Management.

Let’s go over hedge fund activity in other stocks – not necessarily in the same industry as Sirius XM Holdings Inc (NASDAQ:SIRI) but similarly valued. We will take a look at The Progressive Corporation (NYSE:PGR), Franklin Resources, Inc. (NYSE:BEN), Brown-Forman Corporation (NYSE:BF), and Canadian Pacific Railway Limited (USA) (NYSE:CP). This group of stocks’ market values are similar to SIRI’s market value.

Ticker No of HFs with positions Total Value of HF Positions (x1000) Change in HF Position
PGR 29 914281 -1
BEN 32 1957076 0
BF 21 614747 -3
CP 32 2233116 1

As you can see these stocks had an average of 29 hedge funds with bullish positions and the average amount invested in these stocks was $1.43 billion. That figure was $894 million in SIRI’s case. Franklin Resources, Inc. (NYSE:BEN) is the most popular stock in this table. On the other hand Brown-Forman Corporation (NYSE:BF) is the least popular one with only 21 bullish hedge fund positions. Sirius XM Holdings Inc (NASDAQ:SIRI) 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 BEN might be a better candidate to consider a long position.

Disclosure: none.