Is It Time To Consider SJW Group (SJW)?

Seeing as SJW Group (NYSE:SJW) has witnessed a decline in interest from the entirety of the hedge funds we track, logic holds that there lies a certain “tier” of funds that decided to sell off their full holdings by the end of the third quarter. At the top of the heap, Israel Englander’s Millennium Management cashed in the biggest position of the “upper crust” of funds monitored by Insider Monkey, comprising an estimated $1.5 million in stock. David E. Shaw’s fund, D E Shaw, also dropped its stock, about $1.2 million worth.

Let’s also examine hedge fund activity in other stocks – not necessarily in the same industry as SJW Group (NYSE:SJW) but similarly valued. We will take a look at 51job, Inc. (ADR) (NASDAQ:JOBS), Argan, Inc. (NYSEAMEX:AGX), FelCor Lodging Trust Incorporated (NYSE:FCH), and Cavco Industries, Inc. (NASDAQ:CVCO). This group of stocks’ market values resemble SJW’s market value.

Ticker No of HFs with positions Total Value of HF Positions (x1000) Change in HF Position
JOBS 6 26642 2
AGX 17 107827 4
FCH 17 122725 -4
CVCO 13 166370 -3

As you can see these stocks had an average of 13 hedge funds with bullish positions and the average amount invested in these stocks was $106 million. That figure was $50 million in SJW’s case. Argan, Inc. (NYSEAMEX:AGX) is the most popular stock in this table. On the other hand 51job, Inc. (ADR) (NASDAQ:JOBS) is the least popular one with only 6 bullish hedge fund positions. SJW Group (NYSE:SJW) is not the least popular stock in this group but hedge fund interest is still below 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 AGX might be a better candidate to consider taking a long position in.

Disclosure: None