Is Public Service Enterprise Group Inc. (PEG) A Good Stock To Buy?

Page 2 of 2

Because Public Service Enterprise Group Inc. (NYSE:PEG) has witnessed a declining sentiment from the entirety of the hedge funds we track, logic holds that there exists a select few fund managers that slashed their positions entirely in the third quarter. At the top of the heap, Jonathan Barrett and Paul Segal’s Luminus Management said goodbye to the biggest stake of the 700 funds followed by Insider Monkey, totaling an estimated $15.4 million in stock. Joel Greenblatt’s fund, Gotham Asset Management, also cut its stock, about $9.3 million worth of shares. These moves are important to note, as total hedge fund interest dropped by 3 funds in the third quarter.

Let’s now review hedge fund activity in other stocks similar to Public Service Enterprise Group Inc. (NYSE:PEG). These stocks are Ryanair Holdings plc (ADR) (NASDAQ:RYAAY), Southern Copper Corp (NYSE:SCCO), Canadian Natural Resource Ltd (USA) (NYSE:CNQ), and Electronic Arts Inc. (NASDAQ:EA). All of these stocks’ market caps match Public Service Enterprise Group Inc. (NYSE:PEG) ‘s market cap.

Ticker No of HFs with positions Total Value of HF Positions (x1000) Change in HF Position
RYAAY 21 457712 2
SCCO 10 92761 0
CNQ 28 988679 5
EA 51 2377080 4

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 $979 million. That figure was $492 million in Public Service Enterprise Group Inc. (NYSE:PEG)’s case. Electronic Arts Inc. (NASDAQ:EA) is the most popular stock in this table. On the other hand, Southern Copper Corp (NYSE:SCCO) is the least popular one with only 10 bullish hedge fund positions. Public Service Enterprise Group Inc. (NYSE:PEG) 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, Electronic Arts Inc. (NASDAQ:EA) might be a better candidate to consider a long position.

Page 2 of 2