Sanchez Energy Corp (SN): Is It A Good Time to Buy This Stock?

Now that we’ve mentioned the most bullish investors, let’s also take a look at some funds that sold off their entire stakes in the stock during the third quarter. It’s worth mentioning that Ken Griffin’s Citadel Investment Group sold off the biggest position of all the investors followed by Insider Monkey, worth an estimated $0.4 million in call options (though it retained its long position in the stock). Richard Driehaus’ fund, Driehaus Capital, also dropped its stock, about $0.2 million worth.

Let’s go over hedge fund activity in other stocks – not necessarily in the same industry as Sanchez Energy Corp (NYSE:SN) but similarly valued. We will take a look at Angie’s List Inc (NASDAQ:ANGI), M/I Homes Inc (NYSE:MHO), Bojangles Inc (NASDAQ:BOJA), and Regis Corporation (NYSE:RGS). This group of stocks’ market caps are closest to SN’s market cap.

Ticker No of HFs with positions Total Value of HF Positions (x1000) Change in HF Position
ANGI 11 76703 0
MHO 9 51021 1
BOJA 10 12231 3
RGS 14 194863 0

As you can see these stocks had an average of 11 hedge funds with bullish positions and the average amount invested in these stocks was $84 million. That figure was $64 million in SN’s case. Regis Corporation (NYSE:RGS) is the most popular stock in this table. On the other hand M/I Homes Inc (NYSE:MHO) is the least popular one with only 9 bullish hedge fund positions. Sanchez Energy Corp (NYSE:SN) 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 RGS might be a better candidate to consider taking a long position in.

Disclosure: None