Is Staples, Inc. (SPLS) A Good Stock To Buy?

As aggregate interest increased, key money managers were leading the bulls’ herd. Laurion Capital Management, managed by Benjamin A. Smith, established the most valuable call position in Staples, Inc. (NASDAQ:SPLS), which carried a value of $51.4 million at the end of the quarter. Ray Dalio’s Bridgewater Associates also initiated a $9.9 million position during the quarter. The other funds with new positions in the stock are Alec Litowitz and Ross Laser’s Magnetar Capital, Gregg Moskowitz’s Interval Partners, and Paul Marshall and Ian Wace’s Marshall Wace LLP.

Let’s now review hedge fund activity in other stocks similar to Staples, Inc. (NASDAQ:SPLS). These stocks are Sensata Technologies Holding N.V. (NYSE:ST), Fibria Celulose SA (ADR) (NYSE:FBR), Mallinckrodt PLC (NYSE:MNK), and Melco Crown Entertainment Ltd (ADR) (NASDAQ:MPEL). This group of stocks’ market caps are closest to SPLS’s market cap.

Ticker No of HFs with positions Total Value of HF Positions (x1000) Change in HF Position
ST 28 1714303 -5
FBR 8 49866 -2
MNK 40 1554176 -3
MPEL 22 320399 -1

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 $910 million. Mallinckrodt PLC (NYSE:MNK) is the most popular stock in this table. On the other hand Fibria Celulose SA (ADR) (NYSE:FBR) is the least popular one with only 8 bullish hedge fund positions. Staples, Inc. (NASDAQ:SPLS) clearly outshines all of them, with 54 elite funds having invested as much as $1.34 billion at the end of the quarter. 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.