5 Energy Stocks Hedge Funds Are Dumping Like Crazy

Southwestern Energy Company (NYSE:SWN)

– Number of Hedge Fund Shareholders (as of September 30): 37
– Total Value of Hedge Fund Holdings (as of September 30): $1.26 billion
– Hedge Fund Holdings as Percent of Float (as of September 30): 27.40%

Much like its natural gas peer EQT, Southwestern Energy Company (NYSE:SWN) was dumped by 11 funds that we track in the third quarter, leaving a total of 37 funds holding shares of the company at the end of September. Shares of the stock have been volatile due to the wildly fluctuating natural gas futures in recent months. Although coal could gain more market share under the Trump administration, bulls hope that Trump will also give the green light for more natural gas exports. If crude prices rise, LNG demand could increase and demand for natural gas domestically could head upwards, taking Southwestern’s stock with it.

Antero Resources Corp (NYSE:AR)

– Number of Hedge Fund Shareholders (as of September 30): 40
– Total Value of Hedge Fund Holdings (as of September 30): $1.58 billion
– Hedge Fund Holdings as Percent of Float (as of September 30): 18.80%

Like EQT and Southwestern, the number of funds in our system with holdings in Antero Resources Corp (NYSE:AR) fell by 11 quarter-over-quarter as of the end of September. Despite the hedge fund activity, Josh Silverstein of Deutsche Bank upgraded the stock to ‘Buy’ from ‘Hold’, noting that Antero’s hedges for 2017 insulate the company to a degree for the year, and that the long-term risk/reward for the equity has improved versus two quarters ago. Silverstein has a $30 per share price target on the stock, up from the previous $27 target.

Devon Energy Corp (NYSE:DVN)

– Number of Hedge Fund Shareholders (as of September 30): 50
– Total Value of Hedge Fund Holdings (as of September 30): $1.34 billion
– Hedge Fund Holdings as Percent of Float (as of September 30): 7.80%

50 funds tracked by Insider Monkey owned $1.34 billion worth of Devon Energy Corp (NYSE:DVN) shares on September 30, down from 61 funds with $1.48 billion in holdings on June 30. Profit taking could be one reason for some hedge funds leaving the stock, as shares of the E&P have soared by 40% year-to-date on the back of stronger crude prices and now trade for 28.65-times forward earnings estimates. Devon’s forward P/E ratio could fall, however, if OPEC irons out its production cut agreement.

Disclosure: None