Should You Buy SunPower Corporation (SPWR)?

We at Insider Monkey have gone over 700 13F filings that hedge funds and prominent investors are required to file by the government. The 13F filings show the funds’ and investors’ portfolio positions as of September 30. In this article we look at what those investors think of SunPower Corporation (NASDAQ:SPWR).

Is SunPower Corporation (NASDAQ:SPWR) ready to rally soon? The smart money is buying. The number of long hedge fund positions increased by 3 lately. The level and the change in hedge fund popularity aren’t the only variables you need to analyze to decipher hedge funds’ perspectives. A stock may witness a boost in popularity, but it may still be less popular than similarly priced stocks. That’s why at the end of this article we will examine companies such as John Wiley & Sons Inc (NYSE:JW.A), Columbia Property Trust Inc (NYSE:CXP), and Targa Resources Corp (NYSE:TRGP) to gather more data points.

In the financial world, there are tons of metrics shareholders put to use to value publicly traded companies. Some of the less utilized metrics are hedge fund and insider trading signals. We have shown that, historically, those who follow the best picks of the elite fund managers can trounce the market by a healthy margin (see the details here).

Now, let’s analyze the key action surrounding SunPower Corporation (NASDAQ:SPWR).

How have hedgies been trading SunPower Corporation (NASDAQ:SPWR)?

Heading into Q4, a total of 20 of the hedge funds tracked by Insider Monkey were long this stock, an increase of 18% from the previous quarter. With hedge funds’ positions undergoing their usual ebb and flow, there exists a select group of notable hedge fund managers who were upping their stakes considerably (or already accumulated large positions).

Of the funds tracked by Insider Monkey, Mike Masters’s Masters Capital Management has the most valuable position in SunPower Corporation (NASDAQ:SPWR), worth close to $18.7 million, accounting for 0.6% of its total 13F portfolio. On Masters Capital Management’s heels is Bernard Lambilliotte of Ecofin Ltd, with a $17.2 million position; the fund has 3.3% of its 13F portfolio invested in the stock. Remaining professional money managers that hold long positions include Steve Cohen’s Point72 Asset Management, Ken Hahn’s Quentec Asset Management and Ian Simm’s Impax Asset Management.