Here is What Hedge Funds Think About Rockwell Collins, Inc. (COL)

Seeing as Rockwell Collins, Inc. (NYSE:COL) has sustained bearish sentiment from the aggregate hedge fund industry, it’s safe to say that there lies a certain “tier” of hedgies that decided to sell off their positions entirely heading into Q4. Interestingly, Israel Englander’s Millennium Management dumped the biggest position of the “upper crust” of funds watched by Insider Monkey, worth about $6.6 million in stock. Bruce Kovner’s fund, Caxton Associates LP, also cut its stock, about $6 million worth of COL shares.

Let’s go over hedge fund activity in other stocks similar to Rockwell Collins, Inc. (NYSE:COL). These stocks are Lincoln National Corporation (NYSE:LNC), LKQ Corporation (NASDAQ:LKQ), KLA-Tencor Corporation (NASDAQ:KLAC), and Fiat Chrysler Automobiles NV (NYSE:FCAU). This group of stocks’ market valuations resemble COL’s market valuation.

As you can see these stocks had an average of 33 hedge funds with bullish positions and the average amount invested in these stocks was $756 million. That figure was $186 million in COL’s case. KLA-Tencor Corporation (NASDAQ:KLAC) is the most popular stock in this table. On the other hand Lincoln National Corporation (NYSE:LNC) is the least popular one with only 24 bullish hedge fund positions. Compared to these stocks Rockwell Collins, Inc. (NYSE:COL) is even less popular than LNC. Considering that hedge funds aren’t fond of this stock in relation to other companies analyzed in this article, it may be a good idea to analyze it in detail and understand why the smart money isn’t behind this stock. This isn’t necessarily bad news. Although it is possible that hedge funds may think the stock is overpriced and view the stock as a short candidate, they may not be very familiar with the bullish thesis. In either case more research is warranted.

Disclosure: None