Is Adecoagro SA (AGRO) A Good Stock To Buy?

Since Adecoagro SA (NYSE:AGRO) has witnessed declining sentiment from the entirety of the hedge funds we track, it’s safe to say that there was a specific group of hedge funds who were dropping their entire stakes heading into Q4. It’s worth mentioning that Anand Parekh’s Alyeska Investment Group cut the biggest investment of the 700 funds followed by Insider Monkey, totaling close to $3.9 million in stock, and Randall Smith’s Alden Global Capital was right behind this move, as the fund dumped about $0.8 million worth of shares. These bearish behaviors are intriguing to say the least, as aggregate hedge fund interest was cut by 2 funds heading into Q4.

Let’s now review hedge fund activity in other stocks similar to Adecoagro SA (NYSE:AGRO). We will take a look at Stepan Company (NYSE:SCL), Headwaters Inc (NYSE:HW), CONMED Corporation (NASDAQ:CNMD), and Wesco Aircraft Holdings Inc (NYSE:WAIR). This group of stocks’ market valuations match AGRO’s market valuation.

As you can see these stocks had an average of 15 hedge funds with bullish positions and the average amount invested in these stocks was $155 million. That figure was $391 million in AGRO’s case. Headwaters Inc (NYSE:HW) is the most popular stock in this table. On the other hand Stepan Company (NYSE:SCL) is the least popular one with only 11 bullish hedge fund positions. Adecoagro SA (NYSE:AGRO) is not the most popular stock in this group but hedge fund interest is still above average. This is a slightly positive signal but we’d rather spend our time researching stocks with better recent sentiment. In this regard HW might be a better candidate to consider a long position in.

Disclosure: None