Is Target Corporation (TGT) A Good Stock To Buy?

Seeing as Target Corporation (NYSE:TGT) has witnessed falling interest from the entirety of the hedge funds we track, logic holds that there exists a select few hedgies that decided to sell off their positions entirely last quarter. Intriguingly, Benjamin A. Smith’s Laurion Capital Management cut the largest position of the 700 funds monitored by Insider Monkey, totaling close to $49.2 million in stock, and Matthew Hulsizer’s PEAK6 Capital Management was right behind this move, as the fund cut about $7.1 million worth. These transactions are intriguing to say the least, as total hedge fund interest stayed the same (this is a bearish signal in our experience).

Let’s check out hedge fund activity in other stocks similar to Target Corporation (NYSE:TGT). We will take a look at BlackRock, Inc. (NYSE:BLK), HDFC Bank Limited (ADR) (NYSE:HDB), The Dow Chemical Company (NYSE:DOW), and Thermo Fisher Scientific Inc. (NYSE:TMO). This group of stocks’ market caps resemble TGT’s market cap.

As you can see these stocks had an average of 43 hedge funds with bullish positions and the average amount invested in these stocks was $2.82 billion, compared to $1.45 billion in TGT’s case. The Dow Chemical Company (NYSE:DOW) is the most popular stock in this table, while HDFC Bank Limited (ADR) (NYSE:HDB) is the least popular one with only 29 bullish hedge fund positions. Target Corporation (NYSE:TGT) is not the most popular stock in this group, but hedge fund interest is still above average. This is a slightly positive signal, but we’d rather spend our time researching stocks that hedge funds are piling on. In this regard DOW might be a better candidate to consider a long position.