Is Lincoln National Corporation (LNC) A Good Stock To Buy?

Since Lincoln National Corporation (NYSE:LNC) has witnessed declining sentiment from the entirety of the hedge funds we track, logic holds that there was a specific group of fund managers that slashed their full holdings last quarter. Interestingly, Ray Dalio’s Bridgewater Associates dumped the largest stake of the 700 funds monitored by Insider Monkey, worth about $10.9 million in call options. Citadel Investment Group also sold off its call options, about $3.2 million worth, while still holding a long position. These transactions are intriguing to say the least, as total hedge fund interest stayed the same (this is a bearish signal in our experience).

Let’s also examine hedge fund activity in other stocks – not necessarily in the same industry as Lincoln National Corporation (NYSE:LNC) but similarly valued. We will take a look at Wynn Resorts, Limited (NASDAQ:WYNN), Duke Realty Corp (NYSE:DRE), Snap-on Incorporated (NYSE:SNA), and Vereit Inc (NYSE:VER). All of these stocks’ market caps are closest to LNC’s market cap.

As you can see these stocks had an average of 25.75 hedge funds with bullish positions and the average amount invested in these stocks was $901 million. That figure was $668 million in LNC’s case. Wynn Resorts, Limited (NASDAQ:WYNN) is the most popular stock in this table. On the other hand Duke Realty Corp (NYSE:DRE) is the least popular one with only 11 bullish hedge fund positions. Lincoln National Corporation (NYSE:LNC) 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 WYNN might be a better candidate to consider a long position.

Disclosure: None