Is Micron Technology, Inc. (MU) Going to Burn These Hedge Funds?

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Judging by the fact that Micron Technology, Inc. (NASDAQ:MU) has faced a declination in interest from the aggregate hedge fund industry, it’s easy to see that there is a sect of funds who were dropping their positions entirely heading into Q4. Interestingly, John Lykouretzos’ Hoplite Capital Management said goodbye to the largest stake of the 700 funds monitored by Insider Monkey, comprising close to $69.6 million in stock. Anthony Bozza’s fund, Lakewood Capital Management, also cut its stock, about $56.6 million worth. These bearish behaviors are important to note, as total hedge fund interest was cut by 8 funds heading into Q4.

Let’s also examine hedge fund activity in other stocks similar to Micron Technology, Inc. (NASDAQ:MU). These stocks are Interactive Brokers Group, Inc. (NASDAQ:IBKR), Skyworks Solutions Inc (NASDAQ:SWKS), Eversource Energy (NYSE:ES), and Omnicom Group Inc. (NYSE:OMC). This group of stocks’ market valuations is closest to Micron Technology, Inc. (NASDAQ:MU)’s market valuation.

Ticker No of HFs with positions Total Value of HF Positions (x1000) Change in HF Position
IBKR 37 820711 3
SWKS 36 571975 0
ES 13 350832 1
OMC 26 1529637 -4

As you can see, these stocks had an average of 28 hedge funds with bullish positions and the average amount invested in these stocks was $818 million. That figure was $1.87 billion in Micron Technology, Inc. (NASDAQ:MU)’s case. Interactive Brokers Group, Inc. (NASDAQ:IBKR) is the most popular stock in this table. On the other hand, EnergySolutions, Inc. (NYSE:ES) is the least popular one with only 13 bullish hedge fund positions. Compared to these stocks, Micron Technology, Inc. (NASDAQ:MU) 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.

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