Is Weyerhaeuser Co (WY) A Good Stock To Buy Right Now?

Judging by the fact that Weyerhaeuser Co (NYSE:WY) has faced a decline in interest from the entirety of the hedge funds we track, it’s safe to say that there was a specific group of hedge funds that elected to cut their entire stakes by the end of the third quarter. At the top of the heap, First Eagle Investment Management sold off the largest position of all the hedgies tracked by Insider Monkey, worth close to $1105.7 million in stock, and Andrew Weiss’s Weiss Asset Management was right behind this move, as the fund sold off about $72.1 million worth of WY shares. These moves are important to note, as aggregate hedge fund interest fell by 3 funds by the end of the third quarter.

Let’s now take a look at hedge fund activity in other stocks – not necessarily in the same industry as Weyerhaeuser Co (NYSE:WY) but similarly valued. These stocks are Dollar Tree, Inc. (NASDAQ:DLTR), St. Jude Medical, Inc. (NYSE:STJ), Discover Financial Services (NYSE:DFS), and Corning Incorporated (NYSE:GLW). This group of stocks’ market valuations match WY’s market valuation.

As you can see these stocks had an average of 48 hedge funds with bullish positions and the average amount invested in these stocks was $2.13 billion. That figure was just $493 million in WY’s case. Dollar Tree, Inc. (NASDAQ:DLTR) is the most popular stock in this table. On the other hand Corning Incorporated (NYSE:GLW) is the least popular one with only 36 bullish hedge fund positions. Compared to these stocks Weyerhaeuser Co (NYSE:WY) is even less popular than GLW. 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.