Is SunPower Corporation (SPWR) A Good Stock To Buy?

Because SunPower Corporation (NASDAQ:SPWR) has faced a decline in interest from hedge fund managers, it’s safe to say that there lies a certain “tier” of funds that slashed their positions entirely by the end of the third quarter. Interestingly, Mike Masters’ Masters Capital Management dropped the biggest investment of all the hedgies watched by Insider Monkey, worth about $30.9 million in call options, and John A. Levin’s Levin Capital Strategies was right behind this move, as the fund dumped about $3.1 million worth of shares.

Let’s check out hedge fund activity in other stocks – not necessarily in the same industry as SunPower Corporation (NASDAQ:SPWR) but similarly valued. These stocks are Terreno Realty Corporation (NYSE:TRNO), AVG Technologies NV (NYSE:AVG), M.D.C. Holdings, Inc. (NYSE:MDC), and Oclaro, Inc. (NASDAQ:OCLR). This group of stocks’ market values match SPWR’s market value.

Ticker No of HFs with positions Total Value of HF Positions (x1000) Change in HF Position
TRNO 9 21755 0
AVG 14 64320 -4
MDC 11 62421 -1
OCLR 41 247621 12

As you can see these stocks had an average of 19 hedge funds with bullish positions and the average amount invested in these stocks was $99 million. That figure was $53 million in SPWR’s case. Oclaro, Inc. (NASDAQ:OCLR) is the most popular stock in this table. On the other hand Terreno Realty Corporation (NYSE:TRNO) is the least popular one with only 9 bullish hedge fund positions. SunPower Corporation (NASDAQ:SPWR) 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 OCLR might be a better candidate to consider taking a long position in.

Disclosure: None