Is Seagate Technology PLC (STX) A Good Stock To Buy?

Since Seagate Technology PLC (NASDAQ:STX) has experienced falling interest from hedge fund managers, logic holds that there exists a select few money managers who were dropping their entire stakes by the end of the third quarter. Interestingly, Dmitry Balyasny’s Balyasny Asset Management dropped the biggest stake of all the hedgies watched by Insider Monkey, valued at an estimated $29.7 million in stock. John Overdeck and David Siegel’s fund, Two Sigma Advisors, also sold off its stock, about $23.3 million worth. These transactions are important to note, as total hedge fund interest was cut by 4 funds by the end of the third quarter.

Let’s now review hedge fund activity in other stocks similar to Seagate Technology PLC (NASDAQ:STX). These stocks are Molson Coors Brewing Company (NYSE:TAP), Nordstrom, Inc. (NYSE:JWN), WestRock Co (NYSE:WRK), and Ingersoll-Rand PLC (NYSE:IR). All of these stocks’ market caps are closest to STX’s market cap.

As you can see these stocks had an average of 48 hedge funds with bullish positions and the average amount invested in these stocks was $1707 million. That figure was $487 million in STX’s case. Molson Coors Brewing Company (NYSE:TAP) is the most popular stock in this table. On the other hand Nordstrom, Inc. (NYSE:JWN) is the least popular one with only 38 bullish hedge fund positions. Compared to these stocks Seagate Technology PLC (NASDAQ:STX) is even less popular than JWN. 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.