Is Allegheny Technologies Incorporated (ATI) A Good Stock To Buy?

Since Allegheny Technologies Incorporated (NYSE:ATI) has witnessed a decline in interest from the aggregate hedge fund industry, logic holds that there exists a select few money managers who sold off their full holdings by the end of the third quarter. It’s worth mentioning that Kerr Neilson’s Platinum Asset Management said goodbye to the biggest stake of all the hedgies tracked by Insider Monkey, worth about $50.9 million in stock. Phill Gross and Robert Atchinson’s fund, Adage Capital Management, also said goodbye to its stock, about $5.7 million worth.

Let’s check out hedge fund activity in other stocks – not necessarily in the same industry as Allegheny Technologies Incorporated (NYSE:ATI) but similarly valued. We will take a look at International Bancshares Corp (NASDAQ:IBOC), SolarCity Corp (NASDAQ:SCTY), Cohen & Steers, Inc. (NYSE:CNS), and Surgical Care Affiliates Inc (NASDAQ:SCAI). This group of stocks’ market caps resemble ATI’s market cap.

As you can see these stocks had an average of 14 hedge funds with bullish positions and the average amount invested in these stocks was $77 million. That figure was $183 million in ATI’s case. SolarCity Corp (NASDAQ:SCTY) is the most popular stock in this table. On the other hand Cohen & Steers, Inc. (NYSE:CNS) is the least popular one with only 9 bullish hedge fund positions. Allegheny Technologies Incorporated (NYSE:ATI) 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 SCTY might be a better candidate to consider taking a long position in.

Disclosure: None