Is Woodward Inc (WWD) a Good Stock to Buy?

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Seeing as Woodward Inc (NASDAQ:WWD) has sustained declining sentiment from hedge fund managers, logic holds that there were a few hedgies that elected to cut their full holdings last quarter. Interestingly, Richard Driehaus’s Driehaus Capital cashed in the biggest investment of all the investors tracked by Insider Monkey, comprising close to $2.1 million in stock, and Neil Chriss’s Hutchin Hill Capital was right behind this move, as the fund cut about $1.4 million worth of shares.

Let’s also examine hedge fund activity in other stocks similar to Woodward Inc (NASDAQ:WWD). These stocks are Companhia Siderurgica Nacional (ADR) (NYSE:SID), CAE, Inc. (USA) (NYSE:CAE), Allied World Assurance Co Holdings, AG. (NYSE:AWH), and Prosperity Bancshares, Inc. (NYSE:PB). All of these stocks’ market caps match WWD’s market cap.

Ticker No of HFs with positions Total Value of HF Positions (x1000) Change in HF Position
SID 6 4610 0
CAE 12 26317 1
AWH 17 224345 -2
PB 10 79069 -1

As you can see these stocks had an average of 11.25 hedge funds with bullish positions and the average amount invested in these stocks was $84 million. That figure was $190 million in WWD’s case. Allied World Assurance Co Holdings, AG. (NYSE:AWH) is the most popular stock in this table. On the other hand Companhia Siderurgica Nacional (ADR) (NYSE:SID) is the least popular one with only 6 bullish hedge fund positions. Woodward Inc (NASDAQ:WWD) 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 AWH might be a better candidate to consider taking a long position in.

Disclosure: None


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