Is Ferrari N.V. (RACE) A Good Stock To Buy?

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Since Ferrari N.V. (NYSE:RACE) has witnessed falling interest from the entirety of the hedge funds we track, we can see that there lies a certain “tier” of money managers that slashed their entire stakes during the third quarter. At the top of the heap, Barry Rosenstein’s JANA Partners dropped the biggest investment of all the investors followed by Insider Monkey, worth about $67.5 million in stock. Ken Griffin’s fund, Citadel Investment Group, also said goodbye to its call options, about $0.8 million worth.

Let’s now review hedge fund activity in other stocks similar to Ferrari N.V. (NYSE:RACE). These stocks are Motorola Solutions Inc (NYSE:MSI), McCormick & Company, Incorporated (NYSE:MKC), Alliance Data Systems Corporation (NYSE:ADS), and EQT Corporation (NYSE:EQT). All of these stocks’ market caps are similar to RACE’s market cap.

Ticker No of HFs with positions Total Value of HF Positions (x1000) Change in HF Position
MSI 28 1170738 -1
MKC 21 127420 3
ADS 32 1479453 -1
EQT 25 576492 -11

As you can see these stocks had an average of 27 funds with bullish positions and the average amount invested in these stocks was $839 million, compared to $273 million in RACE’s case. Alliance Data Systems Corporation (NYSE:ADS) is the most popular stock in this table. On the other hand McCormick & Company, Incorporated (NYSE:MKC) is the least popular one with only 21 bullish hedge fund positions. Compared to these stocks Ferrari N.V. (NYSE:RACE) is even less popular than McCormick & Company, Incorporated (NYSE:MKC). 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.

Disclosure: none

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