Is CenterPoint Energy, Inc. (CNP) A Good Stock To Buy?

Seeing as CenterPoint Energy, Inc. (NYSE:CNP) has experienced falling interest from the aggregate hedge fund industry, it’s safe to say that there exists a select few funds who sold off their entire stakes in the third quarter. Intriguingly, Paul Singer’s Elliott Management cut the largest two stakes of the 700 funds monitored by Insider Monkey, totaling an estimated $280.9 million in call options, plus a $25.7 million long position. These bearish behaviors are interesting, as total hedge fund interest fell by 2 funds in the third quarter.

Let’s go over hedge fund activity in other stocks similar to CenterPoint Energy, Inc. (NYSE:CNP). These stocks are Masco Corporation (NYSE:MAS), Whole Foods Market, Inc. (NASDAQ:WFM), Ball Corporation (NYSE:BLL), and Annaly Capital Management, Inc. (NYSE:NLY). This group of stocks’ market valuations are similar to CNP’s market valuation.

As you can see these stocks had an average of 28.5 hedge funds with bullish positions and the average amount invested in these stocks was $930 million. That figure was $590 million in CNP’s case. Masco Corporation (NYSE:MAS) is the most popular stock in this table. On the other hand Annaly Capital Management, Inc. (NYSE:NLY) is the least popular one with only 13 bullish hedge fund positions. CenterPoint Energy, Inc. (NYSE:CNP) 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 MAS might be a better candidate to consider a long position in.

Disclosure: None