CST Brands Inc (CST): Smart Money Heading for the Exits

Seeing as CST Brands Inc (NYSE:CST) has experienced bearish sentiment from the entirety of the hedge funds we track, it’s easy to see that there lies a certain “tier” of funds who sold off their entire stakes by the end of the third quarter. At the top of the heap, Alan Fournier’s Pennant Capital Management dumped the biggest stake of the “upper crust” of funds monitored by Insider Monkey, worth an estimated $147.8 million in stock, and First Eagle Investment Management was right behind this move, as the fund said goodbye to about $40.5 million worth of shares. These bearish behaviors are important to note, as aggregate hedge fund interest fell by 7 funds by the end of the third quarter.

Let’s go over hedge fund activity in other stocks – not necessarily in the same industry as CST Brands Inc (NYSE:CST) but similarly valued. These stocks are Teradata Corporation (NYSE:TDC), EPAM Systems Inc (NYSE:EPAM), CAE, Inc. (USA) (NYSE:CAE), and Black Hills Corp (NYSE:BKH). All of these stocks’ market caps are closest to CST’s market cap.

As you can see these stocks had an average of 15.75 hedge funds with bullish positions and the average amount invested in these stocks was $235 million. That figure was $447 million in CST’s case. Teradata Corporation (NYSE:TDC) is the most popular stock in this table. On the other hand CAE, Inc. (USA) (NYSE:CAE) is the least popular one with only 12 bullish hedge fund positions. Compared to these stocks CST Brands Inc (NYSE:CST) is more popular among hedge funds. Considering that hedge funds are fond of this stock in relation to its market cap peers, it may be a good idea to analyze it in detail and potentially include it in your portfolio, bearing in mind that several hedge funds sold off the stock in Q3.

Disclosure: None