Is Wageworks Inc (WAGE) A Good Stock To Buy?

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Since Wageworks Inc (NYSE:WAGE) has sustained falling interest from hedge fund managers, logic holds that there exists a select few money managers who were dropping their entire stakes by the end of the third quarter. At the top of the heap, Richard S. Meisenberg’s ACK Asset Management cashed in the largest investment of the “upper crust” of funds studied by Insider Monkey, totaling an estimated $15 million in stock, and David Costen Haley’s HBK Investments was right behind this move, as the fund said goodbye to about $1.3 million worth of shares.

Let’s also examine hedge fund activity in other stocks similar to Wageworks Inc (NYSE:WAGE). These stocks are Manitowoc Foodservice Inc(NYSE:MFS), Darling International Inc. (NYSE:DAR), J&J Snack Foods Corp. (NASDAQ:JJSF), and Boyd Gaming Corporation (NYSE:BYD). All of these stocks’ market caps resemble WAGE’s market cap.

Ticker No of HFs with positions Total Value of HF Positions (x1000) Change in HF Position
MFS 20 716809 1
DAR 24 291374 -6
JJSF 10 54617 1
BYD 23 667524 -4

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 $433 million. That figure was $84 million in WAGE’s case. Darling International Inc. (NYSE:DAR) is the most popular stock in this table. On the other hand J&J Snack Foods Corp. (NASDAQ:JJSF) is the least popular one with only 10 bullish hedge fund positions. Compared to these stocks Wageworks Inc (NYSE:WAGE) is even less popular than JJSF. Considering that hedge funds aren’t fond of this stock in relation to other companies analyzed in this article, it may be a good idea to analyze it in detail and understand why the smart money isn’t behind this stock. This isn’t necessarily bad news. Although it is possible that hedge funds may think the stock is overpriced and view the stock as a short candidate, they may not be very familiar with the bullish thesis. In either case more research is warranted.

Disclosure: None


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