AIG, AllState, Blackhawk: Hedge Funds Weren’t Fans of These 5 Finance Stocks Last Quarter

#3 Bank of New York Mellon Corp (NYSE:BK)

– Number of Hedge Fund Shareholders (as of June 30): 41
– Total Value of Hedge Funds’ Holdings (as of June 30): $4.59 billion
– Hedge Funds’ Holdings as Percent of Float (as of June 30): 11.00%

A net total of 11 hedge funds sold out of Bank of New York Mellon Corp (NYSE:BK) in the second quarter, making it the third-most widely sold financial stock on our list. Although Bank of New York Mellon doesn’t have as much exposure to Britain as some of its larger peers, the bank will still face additional expenses in terms of moving its financial operations to the continent to maintain access to the EU’s ‘One Market’. Also hurting Bank of New York Mellon among the smart money set may be the company’s valuation and dividend yield. With a forward P/E of 12 and dividend yield of 1.86%, Bank of New York Mellon doesn’t scream cheap as much as some of the bank’s larger peers.

#2 Allstate Corp (NYSE:ALL)

– Number of Hedge Fund Shareholders (as of June 30): 29
– Total Value of Hedge Funds’ Holdings (as of June 30): $1.07 billion
– Hedge Funds’ Holdings as Percent of Float (as of June 30): 4.10%

Like Bank of New York Mellon Corp, there were 11 fewer funds long Allstate Corp (NYSE:ALL) on June 30 than there had been on March 31, with Ray Dalio‘s Bridgewater Associates being one of the prominent investors to sell of its position. Hurting sentiment in the second quarter was a mixed earnings report released in May, in which Allstate beat earnings estimates by $0.15 per share but missed revenue expectations by $90 million. Like AIG, some hedge funds may have sold out of Allstate due to the Brexit decision. Given that the market isn’t as concerned about the Brexit anymore and the U.S. economy is strong, Allstate shares look promising in the long-term.

#1 Blackhawk Network Holdings Inc (NASDAQ:HAWK)

– Number of Hedge Fund Shareholders (as of June 30): 22
– Total Value of Hedge Funds’ Holdings (as of June 30): $335.3 million
– Hedge Funds’ Holdings as Percent of Float (as of June 30): 17.80%

With a net total of 13 funds selling out of the stock from March 31 to June 30, Blackhawk Network Holdings Inc (NASDAQ:HAWK) was the most-widely sold financial stock among the hedge funds in our database during the second quarter. Blackhawk reported mixed earnings in April, with EPS of $0.46 on revenue of $184.6 million, beating profit estimates by $0.14 per share but missing revenue expectations by $13.37 million. Despite the mixed earnings in April, analysts as a whole are bullish. They have an average price target of $39.10 on the stock, suggesting that shares have 15% upside potential.

Disclosure: None