Is GATX Corporation (GMT) A Good Stock To Buy?

Since GATX Corporation (NYSE:GMT) has witnessed declining sentiment from the smart money, logic holds that there is a sect of funds that decided to sell off their full holdings by the end of the third quarter. Interestingly, Chuck Royce’s Royce & Associates said goodbye to the largest position of the 700 funds tracked by Insider Monkey, comprising close to $1.7 million in stock. Matthew Tewksbury’s fund, Stevens Capital Management, also said goodbye to its stock, about $0.8 million worth of shares. These bearish behaviors are important to note, as total hedge fund interest was cut by 3 funds by the end of the third quarter.

Let’s check out hedge fund activity in other stocks similar to GATX Corporation (NYSE:GMT). We will take a look at Balchem Corporation (NASDAQ:BCPC), AllianceBernstein Income Fund Inc. (NYSE:ACG), Alexander’s, Inc. (NYSE:ALX), and SUPERVALU INC. (NYSE:SVU). This group of stocks’ market values are closest to GMT’s market value.

As you can see these stocks had an average of 14 hedge funds with bullish positions and the average amount invested in these stocks was $149 million. That figure was $188 million in GMT’s case. SUPERVALU INC. (NYSE:SVU) is the most popular stock in this table. On the other hand Alexander’s, Inc. (NYSE:ALX) is the least popular one with only 5 bullish hedge fund positions. GATX Corporation (NYSE:GMT) is not the least popular stock in this group, but hedge fund interest is 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 SVU might be a better candidate to consider a long position.