Here is What Hedge Funds Think About Textron Inc. (TXT)

Judging by the fact that Textron Inc. (NYSE:TXT) has witnessed a declination in interest from the aggregate hedge fund industry, it’s easy to see that there were a few money managers who sold off their entire stakes by the end of the third quarter. Intriguingly, Joel Greenblatt’s Gotham Asset Management dropped the biggest position of all the hedgies monitored by Insider Monkey, comprising close to $69.5 million in stock, and Lawrence Sapanski’s Scoria Capital was right behind this move, as the fund dropped about $20.1 million worth of shares. These moves are intriguing to say the least, as total hedge fund interest dropped by 7 funds by the end of the third quarter.

Let’s now review hedge fund activity in other stocks similar to Textron Inc. (NYSE:TXT). We will take a look at MGM Resorts International (NYSE:MGM), Goldcorp Inc. (USA) (NYSE:GG), Grifols SA, Barcelona (NASDAQ:GRFS), and Lam Research Corporation (NASDAQ:LRCX). This group of stocks’ market valuations is similar to Textron Inc. (NYSE:TXT)’s market valuation.

As you can see, these stocks had an average of 34 hedge funds with bullish positions and the average amount invested in these stocks was $1.12 billion. That figure was $688 million in Textron Inc. (NYSE:TXT)’s case. MGM Resorts International (NYSE:MGM) is the most popular stock in this table. On the other hand, Grifols SA, Barcelona (NASDAQ:GRFS) is the least popular one with only 14 bullish hedge fund positions. Textron Inc. (NYSE:TXT) 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, MGM Resorts International (NYSE:MGM) might be a better candidate to consider a long position.