Is Constellation Brands, Inc. (STZ) A Good Stock To Buy?

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Because Constellation Brands, Inc. (NYSE:STZ) has witnessed bearish sentiment from hedge fund managers, we can see that there lies a certain “tier” of hedgies who sold off their positions entirely during the third quarter. Interestingly, Ken Griffin’s Citadel Investment Group dropped the biggest position of the 700 funds tracked by Insider Monkey, worth an estimated $18.2 million in call options.. Sheetal Duggal’s fund, Thrax Management, also dumped its call options, about $10.8 million worth.

Let’s now review hedge fund activity in other stocks similar to Constellation Brands, Inc. (NYSE:STZ). We will take a look at Twenty-First Century Fox Inc (NASDAQ:FOXA), CME Group Inc (NASDAQ:CME), CIGNA Corporation (NYSE:CI), and Brookfield Asset Management Inc. (USA) (NYSE:BAM). All of these stocks’ market caps match STZ’s market cap.

Ticker No of HFs with positions Total Value of HF Positions (x1000) Change in HF Position
FOXA 48 3558064 -1
CME 48 980224 -1
CI 55 3154370 -4
BAM 19 1161171 -2

As you can see these stocks had an average of 43 investors holding shares and the average amount invested in these stocks was $2.21 billion. That figure was $6.68 billion in STZ’s case. CIGNA Corporation (NYSE:CI) is the most popular stock in this table with 55 funds holding shares. On the other hand Brookfield Asset Management Inc. (USA) (NYSE:BAM) is the least popular one with only 19 bullish hedge fund positions. Compared to these stocks Constellation Brands, Inc. (NYSE:STZ) is more popular among hedge funds. Considering that hedge funds are fond of this stock in relation to its market cap peers, it may be a good idea to analyze it in detail and potentially include it in your portfolio.

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