Is TE Connectivity Ltd (TEL) A Good Stock To Buy?

Since TE Connectivity Ltd (NYSE:TEL) has faced a decline in interest from the entirety of the hedge funds we track, it’s easy to see that there is a sect of fund managers that slashed their entire stakes by the end of the third quarter. Intriguingly, Dmitry Balyasny’s Balyasny Asset Management dumped the largest investment of all the hedgies tracked by Insider Monkey, valued at close to $2.8 million in stock. Jacob Gottlieb’s fund, Visium Asset Management, also dropped its stock, about $2.4 million worth. These moves are interesting, as aggregate hedge fund interest fell by 2 funds by the end of the third quarter.

Let’s now take a look at hedge fund activity in other stocks similar to TE Connectivity Ltd. (NYSE:TEL). These stocks are Boston Properties, Inc. (NYSE:BXP), Sun Life Financial Inc. (USA) (NYSE:SLF), Marathon Petroleum Corp (NYSE:MPC), and Cerner Corporation (NASDAQ:CERN). This group of stocks’ market values resemble TEL’s market value.

As you can see these stocks had an average of 27 hedge funds with bullish positions and the average amount invested in these stocks was $1.04 billion. That figure was $870 million in TEL’s case. Marathon Petroleum Corp (NYSE:MPC) is the most popular stock in this table. On the other hand Sun Life Financial Inc. (USA) (NYSE:SLF) is the least popular one with only 13 bullish hedge fund positions. TE Connectivity Ltd. (NYSE:TEL) 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 MPC might be a better candidate to consider a long position in at the moment.

Disclosure: None