Is NewMarket Corporation (NEU) A Good Stock To Buy?

As industrywide interest jumped, specific money managers have jumped into NewMarket Corporation (NYSE:NEU) headfirst. Clinton Group, led by George Hall, created the most valuable position in NewMarket Corporation (NYSE:NEU). Clinton Group had $3.4 million invested in the company at the end of the quarter. Ben Levine, Andrew Manuel and Stefan Renold’s LMR Partners also made a $0.5 million investment in the stock during the quarter. The only other fund with a brand new NEU position is Alec Litowitz and Ross Laser’s Magnetar Capital.

Let’s go over hedge fund activity in other stocks – not necessarily in the same industry as NewMarket Corporation (NYSE:NEU) but similarly valued. These stocks are H&R Block, Inc. (NYSE:HRB), Nutanix Inc. (NASDAQ:NTNX), Israel Chemicals Ltd. (NYSE:ICL), and Carlyle Group LP (NASDAQ:CG). This group of stocks’ market caps are closest to NEU’s market cap.

As you can see these stocks had an average of 16 hedge funds with bullish positions and the average amount invested in these stocks was $84 million. That figure was $104 million in NEU’s case. Nutanix Inc. (NASDAQ:NTNX) is the most popular stock in this table. On the other hand Israel Chemicals Ltd. (NYSE:ICL) is the least popular one with only 4 bullish hedge fund positions. NewMarket Corporation (NYSE:NEU) 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 NTNX might be a better candidate to consider taking a long position in.

Suggested Articles:
Least Racist Countries In Europe
Most Racist States In America Ranked By Hate Crimes
Most Successful Etsy Shops

Disclosure: None