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Is Wingstop Inc (WING) A Good Stock To Buy?

Since Wingstop Inc (NASDAQ:WING) has experienced falling interest from the aggregate hedge fund industry, we can see that there exists a select few money managers that elected to cut their entire stakes heading into Q4. It’s worth mentioning that Gabriel Plotkin’s Melvin Capital Management dropped the biggest stake of the “upper crust” of funds watched by Insider Monkey, worth about $7.8 million in stock, and Israel Englander’s Millennium Management was right behind this move, as the fund dumped about $3.8 million worth. These transactions are intriguing to say the least, as aggregate hedge fund interest dropped by 4 funds heading into Q4.

Let’s now review hedge fund activity in other stocks similar to Wingstop Inc (NASDAQ:WING). We will take a look at Manchester United PLC (NYSE:MANU), JinkoSolar Holding Co., Ltd. (NYSE:JKS), CVR Partners LP (NYSE:UAN), and Sierra Wireless, Inc. (USA) (NASDAQ:SWIR). This group of stocks’ market caps resemble WING’s market cap.

Ticker No of HFs with positions Total Value of HF Positions (x1000) Change in HF Position
MANU 9 92626 -1
JKS 6 46179 -6
UAN 5 2100 0
SWIR 9 17904 0

As you can see these stocks had an average of 7 hedge funds with bullish positions and the average amount invested in these stocks was $40 million. That figure was $21 million in WING’s case. Manchester United PLC (NYSE:MANU) is the most popular stock in this table, since nine funds reported holding its shares as of the end of Septembber. On the other hand CVR Partners LP (NYSE:UAN) is the least popular one with only 5 bullish hedge fund positions. Compared to these stocks Wingstop Inc (NASDAQ:WING) 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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