Is Church & Dwight Co., Inc. (CHD) A Good Stock To Buy?

We already know that not all hedge funds are bullish on the stock and some hedge funds actually dumped their positions entirely. Interestingly, Bruce Kovner’s Caxton Associates LP dumped the biggest investment of all the hedgies followed by Insider Monkey, valued at an estimated $5.1 million in stock. Paul Tudor Jones’ fund, Tudor Investment Corp, also dumped its stock, about $3.5 million worth.

Let’s also examine hedge fund activity in other stocks – not necessarily in the same industry as Church & Dwight Co., Inc. (NYSE:CHD) but similarly valued. These stocks are Red Hat, Inc. (NYSE:RHT), Kimco Realty Corp (NYSE:KIM), Newell Rubbermaid Inc. (NYSE:NWL), and Universal Health Services, Inc. (NYSE:UHS). This group of stocks’ market values are similar to CHD’s market value.

As you can see these stocks had an average of 29 hedge funds with bullish positions and the average amount invested in these stocks was $1.10 billion. That figure was $270 million in CHD’s case. Newell Rubbermaid Inc. (NYSE:NWL) is the most popular stock in this table. On the other hand Kimco Realty Corp (NYSE:KIM) is the least popular one with only 11 bullish hedge fund positions. Church & Dwight Co., Inc. (NYSE:CHD) 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 NWL might be a better candidate to consider taking a long position in.

Disclosure: None