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Is Cincinnati Financial Corporation (CINF) A Good Stock To Buy?

Now, some big names were leading the bulls’ herd. Citadel Investment Group, managed by Ken Griffin, initiated the most valuable position in Cincinnati Financial Corporation (NASDAQ:CINF). Citadel Investment Group had $2.2 million invested in the company at the end of the quarter. Michael Platt and William Reeves’s BlueCrest Capital Mgmt. also made a $1 million investment in the stock during the quarter. The following funds were also among the new Cincinnati Financial Corporation (NASDAQ:CINF) investors: Andrew Feldstein and Stephen Siderow’s Blue Mountain Capital, Peter Muller’s PDT Partners, and Ben Levine, Andrew Manuel and Stefan Renold’s LMR Partners.

Let’s go over hedge fund activity in other stocks similar to Cincinnati Financial Corporation (NASDAQ:CINF). We will take a look at Quest Diagnostics Inc (NYSE:DGX), Cemex SAB de CV (ADR) (NYSE:CX), Snap-on Incorporated (NYSE:SNA), and Voya Financial Inc (NYSE:VOYA). This group of stocks’ market values resembles Cincinnati Financial Corporation (NASDAQ:CINF)’s market value.

Ticker No of HFs with positions Total Value of HF Positions (x1000) Change in HF Position
DGX 27 317876 -5
CX 18 186344 -3
SNA 31 585872 6
VOYA 35 1097599 -5

As you can see, these stocks had an average of 28 hedge funds with bullish positions and the average amount invested in these stocks was $547 million. That figure was $653 million in Cincinnati Financial Corporation (NASDAQ:CINF)’s case. Voya Financial Inc (NYSE:VOYA) is the most popular stock in this table. On the other hand, Cemex SAB de CV (ADR) (NYSE:CX) is the least popular one with only 18 bullish hedge fund positions. Cincinnati Financial Corporation (NASDAQ:CINF) 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, Voya Financial Inc (NYSE:VOYA) might be a better candidate to consider a long position.

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