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Is Alexion Pharmaceuticals, Inc. (ALXN) A Good Stock To Buy?

Due to the fact that Alexion Pharmaceuticals, Inc. (NASDAQ:ALXN) has witnessed a falling interest from the aggregate hedge fund industry, it’s safe to say that there was a specific group of hedgies that slashed their entire stakes in the third quarter. Intriguingly, Andreas Halvorsen’s Viking Global dumped the biggest stake of the “upper crust” of funds watched by Insider Monkey, comprising about $36.5 million in stock, and Clint Carlson’s Carlson Capital was right behind this move, as the fund sold off about $12.9 million worth of shares. These bearish behaviors are intriguing to say the least, as total hedge fund interest dropped by 16 funds in the third quarter.

Let’s now review hedge fund activity in other stocks similar to Alexion Pharmaceuticals, Inc. (NASDAQ:ALXN). We will take a look at Kroger Co. (NYSE:KR), Bank of Montreal (USA) (NYSE:BMO), CIGNA Corporation (NYSE:CI), and BCE Inc. (USA) (NYSE:BCE). This group of stocks’ market valuations is closest to Alexion Pharmaceuticals, Inc. (NASDAQ:ALXN)’s market valuation.

Ticker No of HFs with positions Total Value of HF Positions (x1000) Change in HF Position
KR 42 1277700 9
BMO 17 201745 -2
CI 76 3239730 -2
BCE 14 247070 -5

As you can see, these stocks had an average of 37 hedge funds with bullish positions and the average amount invested in these stocks was $1.24 billion. That figure was $2.41 billion in Alexion Pharmaceuticals, Inc. (NASDAQ:ALXN)’s case. CIGNA Corporation (NYSE:CI) is the most popular stock in this table. On the other hand, BCE Inc. (USA) (NYSE:BCE) is the least popular one with only 14 bullish hedge fund positions. Alexion Pharmaceuticals, Inc. (NASDAQ:ALXN) 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, CIGNA Corporation (NYSE:CI) might be a better candidate to consider a long position.

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