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Is Lexmark International Inc (LXK) A Stock That Can Print Money?

Judging by the fact that Lexmark International Inc (NYSE:LXK) has witnessed falling interest from the smart money, it’s easy to see that there exists a select few hedge funds that elected to cut their full holdings last quarter. At the top of the heap, Renaissance Technologies said goodbye to the largest investment of the 700 funds watched by Insider Monkey, totaling an estimated $9.7 million in shares underlying call options, and Dmitry Balyasny’s Balyasny Asset Management was right behind this move, as the fund dropped about $2.3 million worth of shares. These bearish behaviors are interesting, as total hedge fund interest dropped by 1 fund last quarter.

Let’s now review hedge fund activity in other stocks similar to Lexmark International Inc (NYSE:LXK). These stocks are Cornerstone OnDemand, Inc. (NASDAQ:CSOD), The Buckle, Inc. (NYSE:BKE), Grand Canyon Education Inc (NASDAQ:LOPE), and Plantronics, Inc. (NYSE:PLT). This group of stocks’ market valuations match LXK’s market valuation.

Ticker No of HFs with positions Total Value of HF Positions (x1000) Change in HF Position
CSOD 21 261329 -1
BKE 16 258393 3
LOPE 16 168270 1
PLT 15 95972 -1

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 $196 million. That figure was $393 million in LXK’s case. Cornerstone OnDemand, Inc. (NASDAQ:CSOD) is the most popular stock in this table. On the other hand Plantronics, Inc. (NYSE:PLT) is the least popular one with only 15 bullish hedge fund positions. Lexmark International Inc (NYSE:LXK) is tied for the most popular stock in this group, and with more money invested in it than any other stock. This is a positive signal and makes it a good candidate to consider a long position in.

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