Is Tenaris SA (ADR) (TS) A Good Stock To Buy?

We already know that not all hedge funds are bullish on the stock and some hedge funds actually cut their positions entirely. At the top of the heap, John Burbank’s Passport Capital cut the biggest stake of the 700 funds followed by Insider Monkey, totaling about $10.8 million in stock. Charles Clough’s fund, Clough Capital Partners, also said goodbye to its stock, about $2.9 million worth.

Let’s go over hedge fund activity in other stocks similar to Tenaris SA (ADR) (NYSE:TS). We will take a look at Level 3 Communications, Inc. (NYSE:LVLT), Magna International Inc. (USA) (NYSE:MGA), Western Digital Corp. (NASDAQ:WDC), and T. Rowe Price Group, Inc. (NASDAQ:TROW). All of these stocks’ market caps are closest to TS’s market cap.

As you can see these stocks had an average of 39 hedge funds with bullish positions and the average amount invested in these stocks was $1.22 billion. That figure was $170 million in TS’s case. Western Digital Corp. (NASDAQ:WDC) is the most popular stock in this table. On the other hand Magna International Inc. (USA) (NYSE:MGA) is the least popular one with only 27 bullish hedge fund positions. Compared to these stocks Tenaris SA (ADR) (NYSE:TS) is even less popular than MGA. 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