Should You Buy EnerSys (ENS)?

Because EnerSys (NYSE:ENS) has witnessed a declination in interest from the smart money, it’s easy to see that there is a sect of funds that slashed their full holdings by the end of the third quarter. Interestingly, Andy Redleaf’s Whitebox Advisors dumped the largest position of all the hedgies followed by Insider Monkey, valued at an estimated $3.8 million in stock, and Michael Platt and William Reeves’s BlueCrest Capital Mgmt. was right behind this move, as the fund dumped about $3.5 million worth of shares. These moves are important to note, as total hedge fund interest stayed the same (this is a bearish signal in our experience).

Let’s now review hedge fund activity in other stocks similar to EnerSys (NYSE:ENS). These stocks are Tupperware Brands Corporation (NYSE:TUP), Cimpress NV (NASDAQ:CMPR), Cathay General Bancorp (NASDAQ:CATY), and ALLETE Inc (NYSE:ALE). This group of stocks’ market caps match ENS’s market cap.

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 $233 million. That figure was only $74 million in ENS’s case. Tupperware Brands Corporation (NYSE:TUP) is the most popular stock in this table. On the other hand ALLETE Inc (NYSE:ALE) is the least popular one with only 11 bullish hedge fund positions. EnerSys (NYSE:ENS) 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 TUP might be a better candidate to consider a long position.