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Is Eli Lilly & Co. (LLY) A Good Stock To Buy?

Now, key money managers were breaking ground themselves. Point72 Asset Management, managed by Steve Cohen, initiated the most valuable position in Eli Lilly & Co. (NYSE:LLY). Point72 Asset Management had $123 million invested in the company at the end of the quarter. Samuel Isaly’s OrbiMed Advisors also initiated a $106.5 million position during the quarter. The other funds with new positions in the stock are Christopher James’ Partner Fund Management, Arthur B Cohen and Joseph Healey’s Healthcor Management LP, and Peter Rathjens, Bruce Clarke and John Campbell’s Arrowstreet Capital.

Let’s now take a look at hedge fund activity in other stocks similar to Eli Lilly & Co. (NYSE:LLY). We will take a look at Walgreens Boots Alliance Inc (NASDAQ:WBA), AbbVie Inc (NYSE:ABBV), The Boeing Company (NYSE:BA), and 3M Co (NYSE:MMM). This group of stocks’ market valuations are closest to LLY’s market valuation.

Ticker No of HFs with positions Total Value of HF Positions (x1000) Change in HF Position
WBA 91 9515034 10
ABBV 78 5242795 -1
BA 35 1177207 -9
MMM 42 1907344 2

As you can see these stocks had an average of 62 hedge funds with bullish positions and the average amount invested in these stocks was $4.46 billion. That figure was $2.29 billion in LLY’s case. Walgreens Boots Alliance Inc (NASDAQ:WBA) is the most popular stock in this table, while The Boeing Company (NYSE:BA) is the least popular one with only 35 bullish hedge fund positions. Eli Lilly & Co. (NYSE:LLY) 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 WBA might be a better candidate to consider a long position.

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