Should You Buy SiteOne Landscape Supply Inc (SITE)?

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Consequently, key hedge funds have jumped into SiteOne Landscape Supply Inc (NYSE:SITE) headfirst. Waratah Capital Advisors’ position mentioned above was the largest new position in  SiteOne Landscape Supply Inc (NYSE:SITE). Ben Gambill’s Tiger Eye Capital also initiated a $8.4 million position during the quarter. The following funds were also among the new SITE investors: Mark N. Diker’s Diker Management, Frank Slattery’s Symmetry Peak Management, and John Overdeck and David Siegel’s Two Sigma Advisors.

Let’s now review hedge fund activity in other stocks similar to SiteOne Landscape Supply Inc (NYSE:SITE). These stocks are BofI Holding, Inc. (NASDAQ:BOFI), NBT Bancorp Inc. (NASDAQ:NBTB), Renasant Corp. (NASDAQ:RNST), and First Interstate Bancsystem Inc (NASDAQ:FIBK). This group of stocks’ market valuations are closest to SITE’s market valuation.

Ticker No of HFs with positions Total Value of HF Positions (x1000) Change in HF Position
BOFI 18 116161 1
NBTB 4 14859 0
RNST 9 38642 -2
FIBK 7 31293 2

As you can see these stocks had an average of 9.5 hedge funds with bullish positions and the average amount invested in these stocks was $50 million. That figure was $74 million in SITE’s case. BofI Holding, Inc. (NASDAQ:BOFI) is the most popular stock in this table. On the other hand NBT Bancorp Inc. (NASDAQ:NBTB) is the least popular one with only 4 bullish hedge fund positions. SiteOne Landscape Supply Inc (NYSE:SITE) 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 BOFI might be a better candidate to consider taking a long position in.

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