Is Prudential Public Limited Company (ADR) (PUK) A Good Stock To Buy?

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As industrywide interest jumped, some big names have jumped into Prudential Public Limited Company (ADR) (NYSE:PUK) headfirst. Stevens Capital Management, led by Matthew Tewksbury, initiated the biggest position in Prudential Public Limited Company (ADR) (NYSE:PUK). Stevens Capital Management had $0.9 million invested in the company at the end of the quarter. Matthew Hulsizer’s PEAK6 Capital Management 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 Ken Griffin’s Citadel Investment Group.

Let’s check out hedge fund activity in other stocks – not necessarily in the same industry as Prudential Public Limited Company (ADR) (NYSE:PUK) but similarly valued. These stocks are Las Vegas Sands Corp. (NYSE:LVS), Kimberly Clark Corp (NYSE:KMB), Monsanto Company (NYSE:MON), and Express Scripts Holding Company (NASDAQ:ESRX). This group of stocks’ market caps resemble PUK’s market cap.

Ticker No of HFs with positions Total Value of HF Positions (x1000) Change in HF Position
LVS 31 659604 8
KMB 29 1420992 7
MON 77 3675899 -10
ESRX 52 2444668 1

As you can see these stocks had an average of 47.25 hedge funds with bullish positions and the average amount invested in these stocks was $2050 million. That figure was $20 million in PUK’s case. Monsanto Company (NYSE:MON) is the most popular stock in this table. On the other hand Kimberly Clark Corp (NYSE:KMB) is the least popular one with only 29 bullish hedge fund positions. Compared to these stocks Prudential Public Limited Company (ADR) (NYSE:PUK) is even less popular than KMB. 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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