Is Carpenter Technology Corporation (CRS) A Good Stock To Buy?

Seeing as Carpenter Technology Corporation (NYSE:CRS) has faced bearish sentiment from hedge fund managers, logic holds that there is a sect of money managers that slashed their positions entirely by the end of the third quarter. It’s worth mentioning that Michael Platt and William Reeves’ BlueCrest Capital Mgmt cut the largest position of the 700 funds studied by Insider Monkey, totaling an estimated $0.7 million in stock. Ken Griffin’s fund, Citadel Investment Group, also said goodbye to its call options, about $0.2 million worth, while retaining its long position.

Let’s go over hedge fund activity in other stocks – not necessarily in the same industry as Carpenter Technology Corporation (NYSE:CRS) but similarly valued. These stocks are Coeur d’Alene Mines Corporation (NYSE:CDE), Pebblebrook Hotel Trust (NYSE:PEB), Texas Pacific Land Trust (NYSE:TPL), and MicroStrategy Incorporated (NASDAQ:MSTR). This group of stocks’ market caps are closest to CRS’s market cap.

As you can see these stocks had an average of 16 hedge funds with bullish positions and the average amount invested in these stocks was $263 million. That figure was $98 million in CRS’s case. Coeur d’Alene Mines Corporation (NYSE:CDE) is the most popular stock in this table. On the other hand Pebblebrook Hotel Trust (NYSE:PEB) is the least popular one with only 7 bullish hedge fund positions. Carpenter Technology Corporation (NYSE:CRS) 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 CDE might be a better candidate to consider taking a long position in.

Disclosure: None