Is Nestle SA Reg Shs. Ser. B Spons (ADR) (NSRGY) A Good Stock To Buy?

We view hedge fund activity in the stock unfavorable, but in this case there was only a single hedge fund selling its entire position: Bourgeon Capital. One hedge fund selling its entire position doesn’t always imply a bearish intent. Theoretically a hedge fund may decide to sell a promising position in order to invest the proceeds in a more promising idea. However, we don’t think this is the case in this case because none of the 700+ hedge funds tracked by Insider Monkey identified NSRGY as a viable investment and initiated a position in the stock.

Let’s now take a look at hedge fund activity in other stocks similar to Nestle SA Reg Shs. Ser. B Spons (ADR) (OTCMKTS:NSRGY). These stocks are JPMorgan Chase & Co. (NYSE:JPM), Novartis AG (ADR) (NYSE:NVS), Wal-Mart Stores, Inc. (NYSE:WMT), and AT&T Inc. (NYSE:T). This group of stocks’ market valuations are closest to NSRGY’s market valuation.

As you can see these stocks had an average of 63 hedge funds with bullish positions and the average amount invested in these stocks was $4.90 billion, compared to $1.20 billion in NSRGY’s case. JPMorgan Chase & Co. (NYSE:JPM) is the most popular stock in this table, while Novartis AG (ADR) (NYSE:NVS) is the least popular one with only 29 bullish hedge fund positions. Compared to these stocks Nestle SA Reg Shs. Ser. B Spons (ADR) (OTCMKTS:NSRGY) is even less popular than NVS. Considering that hedge funds aren’t fond of this stock in relation to other companies analyzed in this article, it may be a good idea to either analyze it more closely or choose a stock that enjoys more popularity among smart money investors.