Is Signet Jewelers Ltd. (SIG) A Good Stock To Buy?

Seeing as Signet Jewelers Ltd. (NYSE:SIG) has experienced a decline in interest from the smart money, it’s safe to say that there lies a certain “tier” of hedgies who were dropping their full holdings heading into Q4. Intriguingly, Daniel S. Och’s OZ Management dumped the largest investment of all the hedgies watched by Insider Monkey, worth about $82.1 million in stock. Alan Fournier’s fund, Pennant Capital Management, also said goodbye to its stock, about $78.2 million worth. These bearish behaviors are interesting, as aggregate hedge fund interest dropped by 5 funds heading into Q4.

Let’s now take a look at hedge fund activity in other stocks – not necessarily in the same industry as Signet Jewelers Ltd. (NYSE:SIG) but similarly valued. We will take a look at BorgWarner Inc. (NYSE:BWA), iShares NASDAQ Biotechnology Index (ETF) (NASDAQ:IBB), American Financial Group (NYSE:AFG), and Flextronics International Ltd. (NASDAQ:FLEX). This group of stocks’ market caps match SIG’s market cap.

As you can see these stocks had an average of 24 hedge funds with bullish positions and the average amount invested in these stocks was $567 million. That figure was $2132 million in SIG’s case. Flextronics International Ltd. (NASDAQ:FLEX) is the most popular stock in this table. On the other hand American Financial Group (NYSE:AFG) is the least popular one with only 16 bullish hedge fund positions. Compared to these stocks Signet Jewelers Ltd. (NYSE:SIG) 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.