Is InterContinental Hotels Group PLC (ADR) (IHG) A Good Stock To Buy?

Because InterContinental Hotels Group PLC (ADR) (NYSE:IHG) has gone through falling interest from the smart money, it’s safe to say that there were a few hedgies that decided to sell off their entire stakes heading into Q4. It’s worth mentioning that Israel Englander’s Millennium Management dropped the biggest investment of all the investors followed by Insider Monkey, totaling an estimated $2.2 million in stock. Lee Ainslie’s fund, Maverick Capital, also dumped its stock, about $1.2 million worth.

Let’s now review hedge fund activity in other stocks similar to InterContinental Hotels Group PLC (ADR) (NYSE:IHG). We will take a look at Targa Resources Corp (NYSE:TRGP), Spectrum Brands Holdings, Inc. (NYSE:SPB), Mercadolibre Inc (NASDAQ:MELI), and AEGON N.V. (ADR) (NYSE:AEG). All of these stocks’ market caps resemble IHG’s market cap.

As you can see these stocks had an average of 24.25 hedge funds with bullish positions and the average amount invested in these stocks was $422 million. That figure was $9 million in IHG’s case. Targa Resources Corp (NYSE:TRGP) is the most popular stock in this table. On the other hand AEGON N.V. (ADR) (NYSE:AEG) is the least popular one with only 8 bullish hedge fund positions. Compared to these stocks InterContinental Hotels Group PLC (ADR) (NYSE:IHG) is even less popular than AEG. 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.

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