Is Alexander’s, Inc. (ALX) A Good Stock To Buy?

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Earlier we told you that the aggregate hedge fund interest in the stock was unchanged and we view this as a negative development. Even though there weren’t any hedge funds dumping their holdings during the third quarter, there weren’t any hedge funds initiating brand new positions. This indicates that hedge funds, at the very best, perceive this stock as dead money and they haven’t identified any viable catalysts that can attract investor attention.

Let’s also examine hedge fund activity in other stocks similar to Alexander’s, Inc. (NYSE:ALX). We will take a look at Itron, Inc. (NASDAQ:ITRI), Anixter International Inc. (NYSE:AXE), Ligand Pharmaceuticals Inc. (NASDAQ:LGND), and Community Bank System, Inc. (NYSE:CBU). All of these stocks’ market caps are closest to ALX’s market cap.

Ticker No of HFs with positions Total Value of HF Positions (x1000) Change in HF Position
ITRI 19 447778 3
AXE 20 468029 0
LGND 16 214075 0
CBU 4 9911 2

As you can see these stocks had an average of 15 hedge funds with bullish positions and the average amount invested in these stocks was $285 million. That figure was $94 million in ALX’s case. Anixter International Inc. (NYSE:AXE) is the most popular stock in this table. On the other hand Community Bank System, Inc. (NYSE:CBU) is the least popular one with only 4 bullish hedge fund positions. Alexander’s, Inc. (NYSE:ALX) 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 AXE might be a better candidate to consider taking a long position in.

Disclosure: None


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