Is Celanese Corporation (CE) A Good Stock To Buy Right Now?

Since Celanese Corporation (NYSE:CE) has witnessed declining sentiment from the smart money, we can see that there exists a select few funds that elected to cut their full holdings by the end of the third quarter. Interestingly, Matthew Tewksbury’s Stevens Capital Management said goodbye to the biggest position of the “upper crust” of funds watched by Insider Monkey, valued at about $6.2 million in stock. Malcolm Fairbairn’s fund, Ascend Capital, also dumped its stock, about $4.9 million worth. These transactions are interesting, as aggregate hedge fund interest was cut by 2 funds by the end of the third quarter.

Let’s now take a look at hedge fund activity in other stocks similar to Celanese Corporation (NYSE:CE). These stocks are Hologic, Inc. (NASDAQ:HOLX), Philippine Long Distance Telephone (ADR) (NYSE:PHI), Xerox Corporation (NYSE:XRX), and CarMax, Inc (NYSE:KMX). All of these stocks’ market caps are similar to CE’s market cap.

Ticker No of HFs with positions Total Value of HF Positions (x1000) Change in HF Position
HOLX 33 812836 -2
PHI 4 90945 -2
XRX 32 1494920 1
KMX 34 978977 13

As you can see these stocks had an average of 26 hedge funds with bullish positions and the average amount invested in these stocks was $844 million. That figure was $817 million in CE’s case. CarMax, Inc (NYSE:KMX) is the most popular stock in this table. On the other hand Philippine Long Distance Telephone (ADR) (NYSE:PHI) is the least popular one with only 4 bullish hedge fund positions. Celanese Corporation (NYSE:CE) is not the most popular stock in this group but hedge fund interest is still above average. This is a slightly positive signal but we’d rather spend our time researching stocks that hedge funds are piling on. In this regard KMX might be a better candidate to consider a long position.

Disclosure: None