Provident Financial Services, Inc. (PFS): Smart Money Buying Ahead of Interest Rate Hike

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With general bullishness amongst the heavyweights, key money managers were leading the bulls’ herd. Nine Chapters Capital Management established the largest position in Provident Financial Services, Inc. (NYSE:PFS). Nine Chapters Capital Management had $0.9 million invested in the company at the end of the quarter. Glenn Russell Dubin’s Highbridge Capital Management also initiated a $0.6 million position during the quarter. The other funds with brand new Provident Financial Services, Inc. positions are Peter Muller’s PDT Partners and D E Shaw.

Let’s go over hedge fund activity in other stocks – not necessarily in the same industry as Provident Financial Services, Inc. (NYSE:PFS) but similarly valued. These stocks are First Interstate Bancsystem Inc (NASDAQ:FIBK), Columbia Pipeline Partners LP (NYSE:CPPL), MasTec, Inc. (NYSE:MTZ), and Viavi Solutions Inc (NASDAQ:VIAV). All of these stocks’ market caps are closest to Provident Financial Services, Inc.’s market cap.

Ticker No of HFs with positions Total Value of HF Positions (x1000) Change in HF Position
FIBK 11 48337 1
CPPL 4 8181 0
MTZ 22 228379 0
VIAV 19 229201 -4

As you can see these stocks had an average of 14 hedge funds with bullish positions and the average amount invested in these stocks was $129 million. That figure was $23 million in Provident Financial Services, Inc.’s case. MasTec, Inc. (NYSE:MTZ) is the most popular stock in this table. On the other hand Columbia Pipeline Partners LP (NYSE:CPPL) is the least popular one with only 4 bullish hedge fund positions. Provident Financial Services, Inc. (NYSE:PFS) is not the least popular stock in this group but hedge fund interest is still below average, though it is rising. This is a slightly negative signal and we’d rather spend our time researching stocks that hedge funds are piling on. In this regard MasTec, Inc. might be a better candidate to consider a long position.

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