Is Cullen/Frost Bankers, Inc. (CFR) A Good Stock To Buy According To Hedge Funds?

Due to the fact that Cullen/Frost Bankers, Inc. (NYSE:CFR) has faced falling interest from the aggregate hedge fund industry, it’s easy to see that there exists a select few hedge funds that decided to sell off their positions entirely last quarter. Intriguingly, Solomon Kumin’s Folger Hill Asset Management said goodbye to the largest investment of all the hedgies watched by Insider Monkey, valued at close to $3 million in stock. John W. Rogers’s fund, Ariel Investments, also sold off its stock, about $2 million worth.

Let’s check out hedge fund activity in other stocks similar to Cullen/Frost Bankers, Inc. (NYSE:CFR). We will take a look at Orbital ATK Inc (NYSE:OA), Graphic Packaging Holding Company (NYSE:GPK), Cinemark Holdings, Inc. (NYSE:CNK), and Thor Industries, Inc. (NYSE:THO). This group of stocks’ market values are closest to CFR’s market value.

As you can see these stocks had an average of 26.75 hedge funds with bullish positions and the average amount invested in these stocks was $511 million. That figure was $66 million in CFR’s case. Orbital ATK Inc (NYSE:OA) is the most popular stock in this table. On the other hand Cinemark Holdings, Inc. (NYSE:CNK) is the least popular one with only 17 bullish hedge fund positions. Compared to these stocks Cullen/Frost Bankers, Inc. (NYSE:CFR) is even less popular than CNK. 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