Is KeyCorp (KEY) A Good Stock To Buy?

Seeing as KeyCorp (NYSE:KEY) has experienced a declination in interest from the entirety of the hedge funds we track, logic holds that there lies a certain “tier” of money managers who sold off their positions entirely heading into Q4. Interestingly, Dmitry Balyasny’s Balyasny Asset Management sold off the largest stake of the “upper crust” of funds tracked by Insider Monkey, totaling about $40.7 million in stock. John Brennan’s fund, Sirios Capital Management, also cut its stock, about $32.5 million worth. These transactions are important to note, as aggregate hedge fund interest dropped by 2 funds heading into Q4.

Let’s now review hedge fund activity in other stocks similar to KeyCorp (NYSE:KEY). These stocks are Laboratory Corp. of America Holdings (NYSE:LH), Dr. Reddy’s Laboratories Limited (ADR) (NYSE:RDY), ServiceNow Inc (NYSE:NOW), and Signet Jewelers Ltd. (NYSE:SIG). This group of stocks’ market caps resemble KEY’s market cap.

As you can see these stocks had an average of 32.5 hedge funds with bullish positions and the average amount invested in these stocks was $1660 million. That figure was $656 million in KEY’s case. Signet Jewelers Ltd. (NYSE:SIG) is the most popular stock in this table. On the other hand Dr. Reddy’s Laboratories Limited (ADR) (NYSE:RDY) is the least popular one with only 14 bullish hedge fund positions. KeyCorp (NYSE:KEY) is not the most popular stock in this group but hedge fund interest is still above average. This is a slightly positive signal but we’d rather spend our time researching stocks that hedge funds are piling on. In this regard SIG might be a better candidate to consider a long position.