Palo Alto Networks Inc (PANW)’s Stock Drops Following Earnings Release

Interestingly, Josh Resnick’s Jericho Capital Asset Management dropped the largest stake of all the hedgies tracked by Insider Monkey, worth close to $61.9 million in stock, and John Overdeck and David Siegel’s Two Sigma Advisors was right behind this move, as the fund cut about $35.3 million worth of stock.

Let’s now review hedge fund activity in other stocks – not necessarily in the same industry as Palo Alto Networks Inc (NYSE:PANW) but similarly valued. We will take a look at W.W. Grainger, Inc. (NYSE:GWW), Viacom, Inc. (NASDAQ:VIAB), Potash Corp./Saskatchewan (USA) (NYSE:POT), and Entergy Corporation (NYSE:ETR). This group of stocks’ market values match PANW’s market value.

As you can see these stocks had an average of 28 hedge funds with bullish positions and the average amount invested in these stocks was $855 million. That figure was $956 million in PANW’s case. Viacom, Inc. (NASDAQ:VIAB) is the most popular stock in this table. On the other hand W.W. Grainger, Inc. (NYSE:GWW) is the least popular one with only 21 bullish hedge fund positions. Palo Alto Networks Inc (NYSE:PANW) 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 VIAB might be a better candidate to consider a long position.

Disclosure: None