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

As aggregate interest increased, some big names were breaking ground themselves. Clinton Group, led by George Hall, assembled the most outsized 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 new position in the stock is Alec Litowitz and Ross Laser’s Magnetar Capital.

Let’s also examine hedge fund activity in other stocks similar to NewMarket Corporation (NYSE:NEU). We will take a look at 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 values are similar to NEU’s market value.

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.

Disclosure: None