Archer Daniels Midland Company (ADM) Trading Higher Following Analyst Upgrade

Judging by the fact that Archer Daniels Midland Company (NYSE:ADM) has experienced a bearish sentiment from hedge fund managers, logic holds that there was a specific group of hedgies that elected to cut their full holdings heading into Q2. Interestingly, Peter Rathjens, Bruce Clarke and John Campbell’s Arrowstreet Capital sold off the biggest investment of the 700 funds followed by Insider Monkey, comprising an estimated $17.8 million in stock. Glenn Russell Dubin’s fund, Highbridge Capital Management, also said goodbye to its stock, about $16.2 million worth of stock.

Let’s now review hedge fund activity in other stocks similar to Archer Daniels Midland Company (NYSE:ADM). These stocks are United Continental Holdings Inc (NYSE:UAL), DISH Network Corp. (NASDAQ:DISH), Southern Copper Corp (NYSE:SCCO), and HP Inc. (NYSE:HPQ). This group of stocks’ market caps match ADM’s market cap.

As you can see these stocks had an average of 40 hedge funds with bullish positions and the average amount invested in these stocks was $1698 million. That figure was $675 million in ADM’s case. United Continental Holdings Inc (NYSE:UAL) is the most popular stock in this table. On the other hand Southern Copper Corp (NYSE:SCCO) is the least popular one with only 8 bullish hedge fund positions. Archer Daniels Midland Company (NYSE:ADM) is not the least popular stock in this group, but hedge fund interest is still below average. This is a slightly negative signal and we’d rather spend our time researching stocks that hedge funds are piling on. In this regard UAL might be a better candidate to consider a long position.

Disclosure: None