This information doesn't reveal that much, it simply means that x number of hedge funds have decided that at the time of purchase, this stock was in line with their strategy and is still worth holding right now.
If more funds hold a stock, it can but doesn't necessarily mean the stock is right for you. It may have made sense for the fund to buy at the time, but they may be looking to get rid of it right now. It doesn't tell you what the funds' strategies are, their risk tolerance, their time horizon, or what allocation they've given the stock. You can look at lists of stocks hedge funds have bought recently (delayed), but you would still be following the crowd without really understanding the underlying reasons behind their decisions. Reading analyst reports or individual funds' reports on a stock would be more educational, but people disagree all the time, and there is a reason why people can't make guarantees of performance.
You've heard the statistic that most hedge funds underperform the market, right? One way of generating value and alpha is not by following the crowd but by being creative and finding less popular opportunities. Of course, this takes time, education, and involves risk. While "pick what everyone else is picking" is a valid strategy, most retail investors also generally underperform the market, and it makes more sense to buy an index fund if this is the strategy you are planning on using.
To summarize, in practice all this metric shows is how popular the stock is among hedge funds. It shouldn't really inform your trading strategy. You need to dig deeper to understand why a stock may be more or less preferred by hedge funds. It can help to use this metric as a starting point to find stocks, but if you want to learn more about investing, you should first define your investment goals, learn about investment strategies, and, if you still want to go deeper, financial markets and business fundamentals.