Is Eastman Chemical Company (EMN) A Good Stock To Buy?

Because Eastman Chemical Company (NYSE:EMN) has experienced unchanged sentiment from hedge fund managers, it’s to look at the select few hedge funds that decided to sell off their entire stakes in the third quarter. Intriguingly, Jean-Marie Eveillard’s First Eagle Investment Management sold off the biggest investment of the 700 funds followed by Insider Monkey, worth about $79 million in stock. Anand Parekh’s fund, Alyeska Investment Group, also dropped its bet, about $22.9 million worth of EMN shares. These transactions are intriguing to say the least, as aggregate hedge fund interest stayed the same (this is a bearish signal in our experience).

Let’s go over hedge fund activity in other stocks – not necessarily in the same industry as Eastman Chemical Company (NYSE:EMN) but similarly valued. These stocks are Enbridge Energy Partners, L.P. (NYSE:EEP), First Republic Bank (NYSE:FRC), ONEOK, Inc. (NYSE:OKE), and Medivation Inc (NASDAQ:MDVN). This group of stocks’ market valuations are similar to EMN’s market valuation.

As you can see these stocks had an average of 13 hedge funds with bullish positions and the average amount invested in these stocks was $182 million. That figure was $802 million in EMN’s case. First Republic Bank (NYSE:FRC) is the most popular stock in this table. On the other hand Medivation Inc (NASDAQ:MDVN) is the least popular one with only 1 bullish hedge fund positions. Compared to these stocks Eastman Chemical Company (NYSE:EMN) 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.

Disclosure: none.