Is NorthWestern Corp (NWE) Going To Burn Investors?

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Because NorthWestern Corp (NYSE:NWE) has experienced bearish sentiment from the smart money, logic holds that there lies a certain “tier” of fund managers that slashed their entire stakes by the end of the third quarter. It’s worth mentioning that Glenn Russell Dubin’s Highbridge Capital Management cut the largest investment of the 700 funds followed by Insider Monkey, comprising an estimated $2.4 million in stock. Matthew Tewksbury’s fund, Stevens Capital Management, also dumped its stock, about $0.8 million worth.

Let’s go over hedge fund activity in other stocks similar to NorthWestern Corp (NYSE:NWE). These stocks are MFA Financial, Inc. (NYSE:MFA), Brinker International, Inc. (NYSE:EAT), Sunstone Hotel Investors Inc (NYSE:SHO), and Kite Pharma Inc (NASDAQ:KITE). All of these stocks’ market caps are similar to NWE’s market cap.

Ticker No of HFs with positions Total Value of HF Positions (x1000) Change in HF Position
MFA 11 54202 -1
EAT 22 163128 -2
SHO 7 22255 -2
KITE 27 293694 8

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 $133 million. That figure was $37 million in NWE’s case. Kite Pharma Inc (NASDAQ:KITE) is the most popular stock in this table. On the other hand Sunstone Hotel Investors Inc (NYSE:SHO) is the least popular one with only 7 bullish hedge fund positions. Compared to these stocks NorthWestern Corp (NYSE:NWE) is even less popular than SHO. 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 analyze it in detail and understand why the smart money isn’t behind this stock.

Disclosure: None

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