Is Eagle Materials, Inc. (EXP) A Good Stock To Buy?

Due to the fact that Eagle Materials, Inc. (NYSE:EXP) has witnessed no change in interest from the smart money, we must take a look at a specific group of funds who sold off their entire stakes heading into Q4. Intriguingly, Bruce Kovner’s Caxton Associates LP said goodbye to the largest investment of the 700 funds followed by Insider Monkey, totaling an estimated $13.7 million in stock, and Paul Marshall and Ian Wace’s Marshall Wace LLP was right behind this move, as the fund dumped about $7.7 million worth of EXP shares. These bearish behaviors are important to note, as aggregate hedge fund interest stayed the same (this is a bearish signal in our experience).

Let’s now take a look at hedge fund activity in other stocks similar to Eagle Materials, Inc. (NYSE:EXP). We will take a look at Echostar Corporation (NASDAQ:SATS), BWX Technologies Inc (NYSE:BWXT), Santander Consumer USA Holdings Inc (NYSE:SC), and Microsemi Corporation (NASDAQ:MSCC). This group of stocks’ market valuations resemble EXP’s market valuation.

As you can see these stocks had an average of 28 hedge funds with bullish positions and the average amount invested in these stocks was $439 million. That figure was $477 million in EXP’s case. BWX Technologies Inc (NYSE:BWXT) is the most popular stock in this table. On the other hand Microsemi Corporation (NASDAQ:MSCC) is the least popular one with only 25 bullish hedge fund positions. Eagle Materials, Inc. (NYSE:EXP) 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 that hedge funds are piling on. In this regard BWXT might be a better candidate to consider a long position.

Disclosure: none.