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Is VAALCO Energy, Inc. (EGY) A Good Stock To Buy?

Because VAALCO Energy, Inc. (NYSE:EGY) has faced a bearish sentiment from hedge fund managers, we can see that there lies a certain “tier” of money managers who were dropping their full holdings by the end of the third quarter. At the top of the heap, Paul Marshall and Ian Wace’s Marshall Wace LLP dumped the largest stake of the “upper crust” of funds watched by Insider Monkey, comprising about $0.1 million in stock. Gregory Fraser, Rudolph Kluiber, and Timothy Krochuk’s fund, GRT Capital Partners, also dropped its stock, about $0.1 million worth of shares. These bearish behaviors are important to note, as total hedge fund interest fell by 6 funds by the end of the third quarter.

Let’s go over hedge fund activity in other stocks similar to VAALCO Energy, Inc. (NYSE:EGY). These stocks are ReneSola Ltd. (ADR) (NYSE:SOL), Neonode, Inc (NASDAQ:NEON), Mitek Systems, Inc. (NASDAQ:MITK), and Calithera Biosciences Inc (NASDAQ:CALA). This group of stocks’ market caps are similar to VAALCO Energy, Inc. (NYSE:EGY)’s market cap.

Ticker No of HFs with positions Total Value of HF Positions (x1000) Change in HF Position
SOL 4 5334 0
NEON 6 3213 -1
MITK 6 1962 -1
CALA 5 21817 -1

As you can see, these stocks had an average of 5 hedge funds with bullish positions and the average amount invested in these stocks was $8 million. That figure was $3 million in VAALCO Energy, Inc. (NYSE:EGY)’s case. Neonode, Inc (NASDAQ:NEON) is the most popular stock in this table. On the other hand, ReneSola Ltd. (ADR) (NYSE:SOL) is the least popular one with only 4 bullish hedge fund positions. Compared to these stocks, VAALCO Energy, Inc. (NYSE:EGY) is more popular among hedge funds. 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.

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