Is Lexmark International Inc (LXK) A Good Stock To Buy Right Now?

Since Lexmark International Inc (NYSE:LXK) has faced bearish sentiment from the smart money, we can see that there is a sect of fund managers that elected to cut their positions entirely by the end of the third quarter. Intriguingly, Crispin Odey’s Odey Asset Management Group dropped the biggest stake of the “upper crust” of funds watched by Insider Monkey, totaling an estimated $64.5 million in stock, and David Cohen and Harold Levy’s Iridian Asset Management was right behind this move, as the fund dumped about $45.4 million worth of LXK shares. These moves are interesting, as total hedge fund interest dropped by 3 funds by the end of the third quarter.

Let’s check out hedge fund activity in other stocks – not necessarily in the same industry as Lexmark International Inc (NYSE:LXK) but similarly valued. These stocks are United Natural Foods, Inc. (NASDAQ:UNFI), The Medicines Company (NASDAQ:MDCO), SolarCity Corp (NASDAQ:SCTY), and Owens & Minor, Inc. (NYSE:OMI). This group of stocks’ market values are similar to LXK’s market value.

Ticker No of HFs with positions Total Value of HF Positions (x1000) Change in HF Position
UNFI 21 162679 0
MDCO 27 584714 1
SCTY 19 82586 -7
OMI 13 128694 -3

As you can see these stocks had an average of 20 hedge funds with bullish positions and the average amount invested in these stocks was $240 million. That figure was $304 million in LXK’s case. The Medicines Company (NASDAQ:MDCO) is the most popular stock in this table. On the other hand Owens & Minor, Inc. (NYSE:OMI) is the least popular one with only 13 bullish hedge fund positions. Lexmark International Inc (NYSE:LXK) 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 MDCO might be a better candidate to consider a long position.

Disclosure: none.