Is Koninklijke Philips NV (ADR) (PHG) a Good Stock to Buy?

Since Koninklijke Philips NV (ADR) (NYSE:PHG) has faced a decline in interest from hedge fund managers, it’s easy to see that there was a specific group of hedgies that elected to cut their positions entirely in the third quarter. Interestingly, Mason Hawkins’s Southeastern Asset Management sold off the biggest investment of all the investors watched by Insider Monkey, worth close to $225.8 million in stock, and Bruce Kovner’s Caxton Associates LP was right behind this move, as the fund cut about $3.1 million worth of shares.

Let’s check out hedge fund activity in other stocks similar to Koninklijke Philips NV (ADR) (NYSE:PHG). These stocks are Tyson Foods, Inc. (NYSE:TSN), CRH PLC (ADR) (NYSE:CRH), Royal Bank of Scotland Group plc (ADR) (NYSE:RBS), and Credit Suisse Group AG (ADR) (NYSE:CS). This group of stocks’ market valuations are closest to PHG’s market valuation.

Ticker No of HFs with positions Total Value of HF Positions (x1000) Change in HF Position
TSN 35 1630953 -5
CRH 8 83584 3
RBS 10 20902 1
CS 13 122876 0

As you can see these stocks had an average of 17 hedge funds with bullish positions and the average amount invested in these stocks was $465 million. That figure was $200 million in PHG’s case. Tyson Foods, Inc. (NYSE:TSN) is the most popular stock in this table. On the other hand CRH PLC (ADR) (NYSE:CRH) is the least popular one with only 8 bullish hedge fund positions. Koninklijke Philips Electronics NV (ADR) (NYSE:PHG) 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 TSN might be a better candidate to consider taking a long position in.

Disclosure: None