Is Bemis Company, Inc. (BMS) Worthy of Your Portfolio?

Seeing as Bemis Company, Inc. (NYSE:BMS) has sustained falling interest from hedge fund managers, we can see that there was a specific group of hedgies that elected to cut their positions entirely in the third quarter. It’s worth mentioning that Israel Englander’s Millennium Management cashed in the biggest stake of all the hedgies followed by Insider Monkey, totaling an estimated $21.5 million in stock. Principal Global Investors’s fund, Columbus Circle Investors, also cut its stock, about $8 million worth.

Let’s check out hedge fund activity in other stocks similar to Bemis Company, Inc. (NYSE:BMS). We will take a look at AECOM Technology Corp (NYSE:ACM), The Toro Company (NYSE:TTC), AutoNation, Inc. (NYSE:AN), and Acadia Healthcare Company Inc (NASDAQ:ACHC). All of these stocks’ market caps match BMS’s market cap.

Ticker No of HFs with positions Total Value of HF Positions (x1000) Change in HF Position
ACM 26 338308 0
TTC 23 270776 5
AN 25 1167090 -3
ACHC 22 449275 3

As you can see these stocks had an average of 24 hedge funds with bullish positions and the average amount invested in these stocks was $556 million, compared to $166 million in BMS’s case. AECOM Technology Corp (NYSE:ACM) is the most popular stock in this table. On the other hand Acadia Healthcare Company Inc (NASDAQ:ACHC) is the least popular one with only 22 bullish hedge fund positions. Compared to these stocks Bemis Company, Inc. (NYSE:BMS) is even less popular than Acadia Healthcare Company Inc (NASDAQ:ACHC). Considering that hedge funds aren’t fond of this stock in relation to other companies analyzed in this article, it may be a good idea to analyze it in detail and understand why the smart money isn’t behind this stock. This isn’t necessarily bad news. Although it is possible that hedge funds may think the stock is overpriced and view the stock as a short candidate, they may not be very familiar with the bullish thesis. In either case more research is warranted.

Disclosure: None