Is Mead Johnson Nutrition CO (MJN) A Good Stock To Buy?

Due to the fact that Mead Johnson Nutrition CO (NYSE:MJN) has faced declining sentiment from the aggregate hedge fund industry, it’s safe to say that there was a specific group of fund managers who were dropping their positions entirely last quarter. Interestingly, James Dinan’s York Capital Management cut the largest position of the 700 funds monitored by Insider Monkey, worth close to $243.8 million in stock. Benjamin A. Smith’s fund, Laurion Capital Management, also dropped its stock, about $33.9 million worth. These bearish behaviors are intriguing to say the least, as total hedge fund interest fell by 1 funds last quarter.

Let’s also examine hedge fund activity in other stocks similar to Mead Johnson Nutrition CO (NYSE:MJN). These stocks are Tenaris S.A. (ADR) (NYSE:TS), W.W. Grainger, Inc. (NYSE:GWW), Motorola Solutions Inc (NYSE:MSI), and CenturyLink, Inc. (NYSE:CTL). All of these stocks’ market caps are similar to MJN’s market cap.

Ticker No of HFs with positions Total Value of HF Positions (x1000) Change in HF Position
TS 13 104036 2
GWW 18 855351 2
MSI 27 3004406 -4
CTL 24 297012 -7

As you can see these stocks had an average of 21 hedge funds with bullish positions and the average amount invested in these stocks was $1.07 billion. That figure was $1.63 billion in MJN’s case. Motorola Solutions Inc (NYSE:MSI) is the most popular stock in this table, while Tenaris S.A. (ADR) (NYSE:TS) is the least popular one with only 13 bullish hedge fund positions. Compared to these stocks Mead Johnson Nutrition CO (NYSE:MJN) is more popular among hedge funds. Considering that hedge funds are fond of this stock in relation to its market cap peers, it may be a good idea to analyze it in detail and potentially include it in your portfolio.