Williams Companies, Inc. (WMB) Jumps 5% As The Acquisition Plot Thickens: Is It A Buy?

On the whole how did hedge funds trade Williams Companies, Inc. (NYSE:WMB) during the second quarter?

According to Insider Monkey’s database, there was capital inflow into the stock during the second trimester as there were 86 hedge funds with investments in the stock worth $10.6 billion on June 30 compared to only 60 hedge funds with $6.6 billion in holdings at the end of March. Considering the fact that the stock has appreciated by 14% during the second quarter, we can say that hedge funds were bullish on the stock. Also, investors did not consider this stock to be overvalued, as nearly 25% of the company’s outstanding shares were held by hedge funds at the end of June.

Overall, hedge funds were bullish on the stock, as many hedge funds opted to open fresh positions in the stock during the second quarter, whereas many large shareholders opted to hold onto their positions or strengthen their positions in the stock during the April – June quarter. As the acquisition plot continues to thicken, we can expect more gains from this stock over the next few weeks as a possible bidding war heats up for its acquisition. Considering the bullish hedge fund sentiment on the stock, we recommend buying Williams Companies at the moment.

Disclosure: None