Is Imperial Oil Limited (USA) (IMO) A Good Stock To Buy?

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Judging by the fact that Imperial Oil Limited (USA) (NYSE:IMO) has witnessed declining sentiment from hedge fund managers, logic holds that there was a specific group of hedge funds that elected to cut their positions entirely heading into Q4. At the top of the heap, First Eagle Investment Management sold off the largest position of all the hedgies watched by Insider Monkey, worth an estimated $116.3 million in stock. Matthew Hulsizer’s fund, PEAK6 Capital Management, also said goodbye to its stock, about $0.6 million worth.

Let’s check out hedge fund activity in other stocks – not necessarily in the same industry as Imperial Oil Limited (USA) (NYSE:IMO) but similarly valued. We will take a look at Sprint Nextel Corporation (NYSE:S), Humana Inc (NYSE:HUM), Zimmer Biomet Holdings Inc (NYSE:ZBH), and Baxter International Inc. (NYSE:BAX). This group of stocks’ market caps are closest to IMO’s market cap.

Ticker No of HFs with positions Total Value of HF Positions (x1000) Change in HF Position
S 29 331367 9
HUM 66 5948125 2
ZBH 44 1547131 7
BAX 50 4345509 -4

As you can see these stocks had an average of 47 hedge funds with bullish positions and the average amount invested in these stocks was $3.04 billion. That figure was just $76 million in IMO’s case. Humana Inc (NYSE:HUM) is the most popular stock in this table. On the other hand Sprint Nextel Corporation (NYSE:S) is the least popular one with only 29 bullish hedge fund positions. Compared to these stocks Imperial Oil Limited (USA) (NYSE:IMO) is even less popular than S. 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.

Disclosure: None

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