Is ITC Holdings Corp. (ITC) A Good Stock To Buy?

Because ITC Holdings Corp. (NYSE:ITC) has witnessed no change in interest from hedge fund managers, we think it is important to take a look at a few money managers that elected to cut their entire stakes by the end of the third quarter. At the top of the heap, John Orrico’s Water Island Capital dumped the biggest position of all the hedgies tracked by Insider Monkey, comprising an estimated $105.1 million in stock, and Jean-Marie Eveillard’s First Eagle Investment Management was right behind this move, as the fund dumped about $94.9 million worth of ITC shares. These transactions are interesting, as total 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 – not necessarily in the same industry as ITC Holdings Corp. (NYSE:ITC) but similarly valued. We will take a look at Ashland Inc. (NYSE:ASH), Huntington Bancshares Incorporated (NASDAQ:HBAN), CoStar Group Inc (NASDAQ:CSGP), and Yandex NV (NASDAQ:YNDX). This group of stocks’ market valuations are similar to ITC’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 $471 million. That figure was an impressive $1.77 billion in ITC’s case. Huntington Bancshares Incorporated (NASDAQ:HBAN) is the most popular stock in this table. On the other hand CoStar Group Inc (NASDAQ:CSGP) is the least popular one with only 20 bullish hedge fund positions. Compared to these stocks ITC Holdings Corp. (NYSE:ITC) is more popular among hedge funds. Considering that hedge funds are fond of this stock in relation to its market cap peers, it may be a good idea to analyze it in detail and potentially include it in your portfolio.

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