Is Exxon Mobil Corporation (XOM) A Good Stock To Buy?

Seeing as Exxon Mobil Corporation (NYSE:XOM) has witnessed declining sentiment from the aggregate hedge fund industry, logic holds that there lies a certain “tier” of money managers that elected to cut their entire stakes during the third quarter. Intriguingly, Ken Griffin’s Citadel Investment Group said goodbye to the biggest position of the 700 funds monitored by Insider Monkey, worth about $317.8 million in call options., and Eric W. Mandelblatt’s Soroban Capital Partners was right behind this move, as the fund said goodbye to about $131.2 million worth.

Let’s also examine hedge fund activity in other stocks similar to Exxon Mobil Corporation (NYSE:XOM). We will take a look at Berkshire Hathaway Inc. (NYSE:BRK-B), Amazon.com, Inc. (NASDAQ:AMZN), Johnson & Johnson (NYSE:JNJ), and Facebook Inc (NASDAQ:FB). This group of stocks’ market values resemble XOM’s market value.

Ticker No of HFs with positions Total Value of HF Positions (x1000) Change in HF Position
BRK-B 74 20315727 -4
AMZN 150 20794328 5
JNJ 82 5146011 0
FB 149 16275572 1

As you can see these stocks had an average of 114 hedge funds with bullish positions and the average amount invested in these stocks was $15.63 billion. That figure was $2.83 billion in XOM’s case. Amazon.com, Inc. (NASDAQ:AMZN) is the most popular stock in this table, while Berkshire Hathaway Inc. (NYSE:BRK-B) is the least popular one with only 74 bullish hedge fund positions. Compared to these stocks Exxon Mobil Corporation (NYSE:XOM) is even less popular than BRK-B. Considering that hedge funds aren’t fond of this stock in relation to other companies analyzed in this article, it may be a good idea to analyze it in detail and understand why the smart money isn’t behind this stock. This isn’t necessarily bad news. Although it is possible that hedge funds may think the stock is overpriced and view the stock as a short candidate, they may not be very familiar with the bullish thesis. In either case more research is warranted.