Is Revlon Inc (REV) A Good Stock to Buy?

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Judging by the fact that Revlon Inc (NYSE:REV) has faced declining sentiment from the entirety of the hedge funds we track, we can see that there exists a select few hedgies that elected to cut their entire stakes by the end of the third quarter. At the top of the heap, Israel Englander’s Millennium Management said goodbye to the biggest position of the 700 funds followed by Insider Monkey, worth about $2.2 million in stock. Citadel Investment Group also dumped its call options, about $0.2 million worth, while retaining its long position.

Let’s check out hedge fund activity in other stocks similar to Revlon Inc (NYSE:REV). These stocks are Bloomin’ Brands Inc (NASDAQ:BLMN), Boston Beer Co Inc (NYSE:SAM), The New York Times Company (NYSE:NYT), and Carpenter Technology Corporation (NYSE:CRS). This group of stocks’ market caps resemble REV’s market cap.

Ticker No of HFs with positions Total Value of HF Positions (x1000) Change in HF Position
BLMN 21 104326 -2
SAM 16 277663 3
NYT 23 263123 1
CRS 9 98483 0

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 $186 million. That figure was $16 million in REV’s case. The New York Times Company (NYSE:NYT) is the most popular stock in this table. On the other hand Carpenter Technology Corporation (NYSE:CRS) is the least popular one with only 9 bullish hedge fund positions. Compared to these stocks Revlon Inc (NYSE:REV) is only as popular as CRS. 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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