Is Arrow Electronics, Inc. (ARW) A Good Stock To Buy?

Seeing as Arrow Electronics, Inc. (NYSE:ARW) has encountered falling interest from hedge fund managers, logic holds that there was a specific group of hedge funds who sold off their positions entirely heading into fourth quarter. Interestingly, Peter Algert and Kevin Coldiron’s Algert Coldiron Investors cut the largest stake of all the investors followed by Insider Monkey, worth about $1.8 million in call options., and Ken Griffin’s Citadel Investment Group was right behind this move, as the fund dropped about $1.1 million worth of shares.

Let’s go over hedge fund activity in other stocks similar to Arrow Electronics, Inc. (NYSE:ARW). These stocks are Seattle Genetics, Inc. (NASDAQ:SGEN), Genpact Limited (NYSE:G), CF Industries Holdings, Inc. (NYSE:CF), and China Southern Airlines Co Ltd (ADR) (NYSE:ZNH). This group of stocks’ market values are closest to ARW’s market value.

As you can see these stocks had an average of 21 hedge funds with bullish positions and the average amount invested in these stocks was $1.02 billion. That figure was $341 million in ARW’s case. CF Industries Holdings, Inc. (NYSE:CF) is the most popular stock in this table. On the other hand China Southern Airlines Co Ltd (ADR) (NYSE:ZNH) is the least popular one with only 3 bullish hedge fund positions. Arrow Electronics, Inc. (NYSE:ARW) 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 CF might be a better candidate to consider taking a long position in.

Disclosure: None