Here’s What This Metric Says about Textron Inc. (TXT)

We already know that not all hedge funds are bullish on the stock and some hedge funds actually dropped their positions entirely. Intriguingly, Israel Englander’s Millennium Management dropped the largest stake of the 700 funds tracked by Insider Monkey, comprising an estimated $16.2 million in stock, and Jim Simons’ Renaissance Technologies was right behind this move, as the fund dumped about $7.2 million worth of shares.

Let’s go over hedge fund activity in other stocks similar to Textron Inc. (NYSE:TXT). We will take a look at Akamai Technologies, Inc. (NASDAQ:AKAM), WestRock Co (NYSE:WRK), Mettler-Toledo International Inc. (NYSE:MTD), and Total System Services, Inc. (NYSE:TSS). This group of stocks’ market caps are closest to TXT’s market cap.

As you can see these stocks had an average of 30 funds with bullish positions and the average amount invested in these stocks was $594 million, which is higher than the $388 million figure in TXT’s case. Akamai Technologies, Inc. (NASDAQ:AKAM) is the most popular stock in this table. On the other hand Mettler-Toledo International Inc. (NYSE:MTD) is the least popular one with only 21 funds holding shares. Compared to these stocks Textron Inc. (NYSE:TXT) is even less popular than Mettler-Toledo International Inc. (NYSE:MTD). 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