Is Statoil ASA (ADR) (STO) A Good Stock To Buy?

Now that we’ve mentioned the most bullish investors, let’s also take a look at some funds that said goodbye to their entire stakes in the stock during the third quarter. Interestingly, Charles Clough’s Clough Capital Partners said goodbye to the largest position of all the investors followed by Insider Monkey, comprising close to $8.7 million in stock, and Matthew Hulsizer’s PEAK6 Capital Management was right behind this move, as the fund said goodbye to about $1.9 million worth of shares.

Let’s also examine hedge fund activity in other stocks similar to Statoil ASA (ADR) (NYSE:STO). We will take a look at EOG Resources Inc (NYSE:EOG), Eni SpA (ADR) (NYSE:E), Honda Motor Co Ltd (ADR) (NYSE:HMC), and Caterpillar Inc. (NYSE:CAT). This group of stocks’ market caps are similar to STO’s market cap.

As you can see these stocks had an average of 25 hedge funds with bullish positions and the average amount invested in these stocks was $728 million. That figure was $85 million in STO’s case. EOG Resources Inc (NYSE:EOG) is the most popular stock in this table. On the other hand Eni SpA (ADR) (NYSE:E) is the least popular one with only 4 bullish hedge fund positions. Statoil ASA (ADR) (NYSE:STO) 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 EOG might be a better candidate to consider taking a long position in.

Disclosure: None