Is Agnico Eagle Mines Ltd (USA) (AEM) A Good Stock To Buy?

Judging by the fact that Agnico Eagle Mines Ltd (USA) (NYSE:AEM) has faced declining sentiment from the aggregate hedge fund industry, it’s easy to see that there exists a select few hedgies who sold off their entire stakes by the end of the third quarter. At the top of the heap, Jean-Marie Eveillard’s First Eagle Investment Management dropped the biggest position of all the hedgies watched by Insider Monkey, totaling about $750.8 million in call options, and Ken Griffin’s Citadel Investment Group was right behind this move, as the fund said goodbye to about $15.9 million worth of options. These bearish behaviors are interesting, as total hedge fund interest dropped by 4 funds by the end of the third quarter.

Let’s now take a look at hedge fund activity in other stocks – not necessarily in the same industry as Agnico Eagle Mines Ltd (USA) (NYSE:AEM) but similarly valued. These stocks are Principal Financial Group Inc (NYSE:PFG), Advance Auto Parts, Inc. (NYSE:AAP), Twitter Inc (NYSE:TWTR), and Pembina Pipeline Corp (NYSE:PBA). This group of stocks’ market values match AEM’s market value.

As you can see these stocks had an average of 34 hedge funds with bullish positions and the average amount invested in these stocks was $1.01 billion. That figure was $500 million in AEM’s case. Advance Auto Parts, Inc. (NYSE:AAP) is the most popular stock in this table. On the other hand Pembina Pipeline Corp (NYSE:PBA) is the least popular one with only 11 bullish hedge fund positions. Agnico Eagle Mines Ltd (USA) (NYSE:AEM) is not the least popular stock in this group but hedge fund interest is still below average. This is a slightly negative signal and we’d rather spend our time researching stocks that hedge funds are piling on. In this regard AAP might be a better candidate to consider a long position.

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