How HP Inc. (HPQ) Stacks Up Against Its Peers

Since HP Inc. (NYSE:HPQ) has experienced a decline in interest from the aggregate hedge fund industry, it’s safe to say that there was a specific group of hedge funds that decided to sell off their entire stakes in the third quarter. Intriguingly, Joel Greenblatt’s Gotham Asset Management dropped the biggest stake of the 700 funds followed by Insider Monkey, valued at close to $32.2 million in stock. Charles de Vaulx’s fund, International Value Advisers, also sold off its stock, about $13.4 million worth. These moves are interesting, as total hedge fund interest dropped by 1 fund in the third quarter.

Let’s go over hedge fund activity in other stocks similar to HP Inc. (NYSE:HPQ). These stocks are Paychex, Inc. (NASDAQ:PAYX), State Street Corporation (NYSE:STT), Vertex Pharmaceuticals Incorporated (NASDAQ:VRTX), and Edwards Lifesciences Corp (NYSE:EW). This group of stocks’ market caps resemble HPQ’s market cap.

Ticker No of HFs with positions Total Value of HF Positions (x1000) Change in HF Position
PAYX 24 612841 1
STT 31 633743 -2
VRTX 33 454491 0
EW 38 2001027 -5

As you can see these stocks had an average of 31.5 hedge funds with bullish positions and the average amount invested in these stocks was $926 million. That figure was $1.29 billion in HPQ’s case. Edwards Lifesciences Corp (NYSE:EW) is the most popular stock in this table. On the other hand Paychex, Inc. (NASDAQ:PAYX) is the least popular one with only 24 bullish hedge fund positions. Compared to these stocks HP Inc. (NYSE:HPQ) is more popular among hedge funds. Considering that hedge funds are fond of this stock in relation to its market cap peers and seem to consider it a solid long-term investment, it may be a good idea to analyze it in detail and potentially include it in your portfolio.

Disclosure: None