Is Hexcel Corporation (HXL) A Good Stock To Buy?

Since Hexcel Corporation (NYSE:HXL) has weathered bearish sentiment from the entirety of the hedge funds we track, we can see that there exists a select few funds that decided to sell off their positions entirely last quarter. At the top of the heap, Matthew Hulsizer’s PEAK6 Capital Management said goodbye to the biggest position of the “upper crust” of funds studied by Insider Monkey, comprising about $0.6 million in stock. Andrew Feldstein and Stephen Siderow’s fund, Blue Mountain Capital, also said goodbye to its stock, about $0.4 million worth.

Let’s now review hedge fund activity in other stocks similar to Hexcel Corporation (NYSE:HXL). These stocks are White Mountains Insurance Group Ltd (NYSE:WTM), Credit Acceptance Corp. (NASDAQ:CACC), Yamana Gold Inc. (USA) (NYSE:AUY), and Techne Corporation (NASDAQ:TECH). All of these stocks’ market caps match HXL’s market cap.

As you can see these stocks had an average of 18.25 hedge funds with bullish positions and the average amount invested in these stocks was $403 million. That figure was $61 million in HXL’s case. Credit Acceptance Corp. (NASDAQ:CACC) is the most popular stock in this table. On the other hand White Mountains Insurance Group Ltd (NYSE:WTM) is the least popular one with only 12 bullish hedge fund positions. Compared to these stocks Hexcel Corporation (NYSE:HXL) is even less popular than WTM. 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.

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