Is Whole Foods Market, Inc. (WFM) A Good Stock To Buy?

Now, key hedge funds were breaking ground themselves. Point72 Asset Management created the most outsized position in Whole Foods Market, Inc. (NASDAQ:WFM). Point72 Asset Management had $48.9 million invested in the company at the end of the quarter. Citadel Investment Group also made a $18.2 million investment in the stock during the quarter. The following funds were also among the new WFM investors: Millennium Management, one of the 10 largest hedge funds in the world, Mario Gabelli’s GAMCO Investors, and Daniel S. Och’s OZ Management.

Let’s also examine hedge fund activity in other stocks – not necessarily in the same industry as Whole Foods Market, Inc. (NASDAQ:WFM) but similarly valued. These stocks are Foot Locker, Inc. (NYSE:FL), Sealed Air Corp (NYSE:SEE), Ihs Markit Ltd. (NASDAQ:INFO), and Arthur J. Gallagher & Co. (NYSE:AJG). All of these stocks’ market caps match WFM’s market cap.

As you can see these stocks had an average of 26 hedge funds with bullish positions and the average amount invested in these stocks was $1000 million. That figure was $768 million in WFM’s case. Sealed Air Corp (NYSE:SEE) is the most popular stock in this table. On the other hand Arthur J. Gallagher & Co. (NYSE:AJG) is the least popular one with only 12 bullish hedge fund positions. Whole Foods Market, Inc. (NASDAQ:WFM) 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 SEE might be a better candidate to consider taking a long position in.

Disclosure: None