Is Toll Brothers Inc (TOL) a Good Stock to Invest in?

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With a general bullishness amongst the heavyweights, key hedge funds have jumped into Toll Brothers Inc (NYSE:TOL) headfirst. Jabre Capital Partners assembled the biggest call position in Toll Brothers Inc (NYSE:TOL). Anand Parekh’s Alyeska Investment Group also made a $12.7 million investment in the stock during the quarter. The following funds were also among the new TOL investors: Eduardo Abush’s Waterfront Capital Partners, Benjamin A. Smith’s Laurion Capital Management, and Philip Hempleman’s Ardsley Partners.

Let’s now review hedge fund activity in other stocks similar to Toll Brothers Inc (NYSE:TOL). We will take a look at Tesoro Logistics LP (NYSE:TLLP), CubeSmart (NYSE:CUBE), International Game Technology (NYSE:IGT), and Frontier Communications Corp (NASDAQ:FTR). This group of stocks’ market caps resemble TOL’s market cap.

Ticker No of HFs with positions Total Value of HF Positions (x1000) Change in HF Position
TLLP 6 24745 -3
CUBE 17 206002 0
IGT 30 673800 7
FTR 24 135884 -1

As you can see these stocks had an average of 19 funds with bullish positions and the average amount invested in these stocks was $260 million, versus $330 million in TOL’s case. International Game Technology (NYSE:IGT) is the most popular stock in this table. On the other hand Tesoro Logistics LP (NYSE:TLLP) is the least popular one with only 6 bullish hedge fund positions. Toll Brothers Inc (NYSE:TOL) 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 International Game Technology (NYSE:IGT) might be a better candidate to consider taking a long position in.

Disclosure: none

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