Hedge Funds Aren’t Crazy About Jacobs Engineering Group Inc (JEC) Anymore

Judging by the fact that Jacobs Engineering Group Inc (NYSE:JEC) has sustained falling interest from the entirety of the hedge funds we track, it’s safe to say that there is a sect of hedgies that elected to cut their full holdings heading into Q4. Interestingly, Bruce Kovner’s Caxton Associates LP got rid of the biggest investment of all the investors followed by Insider Monkey, totaling about $13.7 million in call options, and Ken Griffin’s Citadel Investment Group was right behind this move, as the fund sold off about $2.5 million worth of shares.

Let’s go over hedge fund activity in other stocks similar to Jacobs Engineering Group Inc (NYSE:JEC). These stocks are The Ultimate Software Group, Inc. (NASDAQ:ULTI), Apollo Global Management LLC (NYSE:APO), FMC Technologies, Inc. (NYSE:FTI), and Tyler Technologies, Inc. (NYSE:TYL). This group of stocks’ market caps are similar to JEC’s market cap.

As you can see these stocks had an average of 25 hedge funds with bullish positions and the average amount invested in these stocks was $424 million. That figure was $148 million in JEC’s case. FMC Technologies, Inc. (NYSE:FTI) is the most popular stock in this table. On the other hand The Ultimate Software Group, Inc. (NASDAQ:ULTI) is the least popular one with only 18 bullish hedge fund positions. Compared to these stocks Jacobs Engineering Group Inc (NYSE:JEC) is even less popular than ULTI. Considering that hedge funds aren’t fond of this stock in relation to other companies analyzed in this article, it may be a good idea to analyze it in detail and understand why the smart money isn’t behind this stock. This isn’t necessarily bad news. Although it is possible that hedge funds may think the stock is overpriced and view the stock as a short candidate, they may not be very familiar with the bullish thesis. In either case more research is warranted.

Disclosure: none.