Is Store Capital Corp (STOR) a Good Stock to Buy?

Seeing as Store Capital Corp (NYSE:STOR) has witnessed falling interest from the entirety of the hedge funds we track, it’s easy to see that there lies a certain “tier” of hedge funds that elected to cut their positions entirely heading into Q4. At the top of the heap, Michael Swotes’ Castle Ridge Investment Management got rid of the biggest investment of all the investors watched by Insider Monkey, valued at about $9 million in stock, and Anand Parekh’s Alyeska Investment Group was right behind this move, as the fund said goodbye to about $7.4 million worth of shares.

Let’s also examine hedge fund activity in other stocks – not necessarily in the same industry as Store Capital Corp (NYSE:STOR) but similarly valued. We will take a look at MSC Industrial Direct Co Inc (NYSE:MSM), Hospitality Properties Trust (NYSE:HPT), Healthcare Trust Of America Inc (NYSE:HTA), and Cognex Corporation (NASDAQ:CGNX). This group of stocks’ market values are similar to STOR’s market value.

As you can see these stocks had an average of 14 hedge funds with bullish positions and the average amount invested in these stocks was $234 million. That figure was $143 million in STOR’s case. MSC Industrial Direct Co Inc (NYSE:MSM) is the most popular stock in this table. On the other hand Healthcare Trust Of America Inc (NYSE:HTA) is the least popular one with only 9 bullish hedge fund positions. Store Capital Corp (NYSE:STOR) 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 MSM might be a better candidate to consider taking a long position in.

Disclosure: None