Do Hedge Funds Love Intuit Inc. (INTU)?

Seeing as Intuit Inc. (NASDAQ:INTU) has witnessed bearish sentiment from the aggregate hedge fund industry, it’s easy to see that there was a specific group of hedge funds that slashed their entire stakes heading into Q4. Intriguingly, David Stemerman’s Conatus Capital Management cut the largest stake of all the hedgies followed by Insider Monkey, valued at an estimated $110.5 million in stock, and Steve Cohen’s Point72 Asset Management was right behind this move, as the fund cut about $32.8 million worth of shares. These bearish behaviors are interesting, as aggregate hedge fund interest was cut by 11 funds heading into Q4.

Let’s now review hedge fund activity in other stocks similar to Intuit Inc. (NASDAQ:INTU). These stocks are Constellation Brands, Inc. (NYSE:STZ), ICICI Bank Limited (ADR) (NYSE:IBN), Deere & Company (NYSE:DE), and TE Connectivity Ltd. (NYSE:TEL). All of these stocks’ market caps match INTU’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 $2.30 billion. That figure was $611 million in INTU’s case. Constellation Brands, Inc. (NYSE:STZ) is the most popular stock in this table, while TE Connectivity Ltd. (NYSE:TEL) is the least popular one with only 28 bullish hedge fund positions. Intuit Inc. (NASDAQ:INTU) 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 STZ might be a better candidate to consider a long position.