Is Silgan Holdings Inc. (SLGN) A Good Stock To Buy?

Since Silgan Holdings Inc. (NASDAQ:SLGN) has sustained bearish sentiment from hedge fund managers, we can see that there is a sect of money managers that elected to cut their positions entirely heading into Q4. It’s worth mentioning that Joel Greenblatt’s Gotham Asset Management said goodbye to the largest position of the 700 funds monitored by Insider Monkey, comprising an estimated $2.8 million in stock, and Paul Marshall and Ian Wace’s Marshall Wace LLP was right behind this move, as the fund dropped about $1.6 million worth of SLGN shares.

Let’s now take a look at hedge fund activity in other stocks – not necessarily in the same industry as Silgan Holdings Inc. (NASDAQ:SLGN) but similarly valued. We will take a look at Federated Investors Inc (NYSE:FII), Valmont Industries, Inc. (NYSE:VMI), Ciena Corporation (NASDAQ:CIEN), and Mercury General Corporation (NYSE:MCY). This group of stocks’ market caps are similar to SLGN’s market cap.

As you can see these stocks had an average of 19 hedge funds with bullish positions and the average amount invested in these stocks was $217 million. That figure was $147 million in SLGN’s case. Ciena Corporation (NASDAQ:CIEN) is the most popular stock in this table. On the other hand Mercury General Corporation (NYSE:MCY) is the least popular one with only 10 bullish hedge fund positions. Compared to these stocks Silgan Holdings Inc. (NASDAQ:SLGN) is even less popular than MCY. 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.

Disclosure: None