Is Silver Wheaton Corp. (USA) (SLW) A Good Stock To Buy?

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Seeing as Silver Wheaton Corp. (USA) (NYSE:SLW) has sustained a decline in interest from the smart money, we can see that there is a sect of fund managers that decided to sell off their full holdings between July and September. Intriguingly, Leon Cooperman’s Omega Advisors sold off the largest investment of the 700 funds studied by Insider Monkey, comprising about $27.7 million in stock. Ken Griffin’s fund, Citadel Investment Group, also said goodbye to its call options, about $18.9 million worth.

Let’s now review hedge fund activity in other stocks – not necessarily in the same industry as Silver Wheaton Corp. (USA) (NYSE:SLW) but similarly valued. We will take a look at Global Payments Inc (NYSE:GPN), Quest Diagnostics Inc (NYSE:DGX), CMS Energy Corporation (NYSE:CMS), and Cintas Corporation (NASDAQ:CTAS). This group of stocks’ market values are closest to SLW’s market value.

Ticker No of HFs with positions Total Value of HF Positions (x1000) Change in HF Position
GPN 20 436064 -10
DGX 24 349248 -1
CMS 19 395362 1
CTAS 33 587766 6

As you can see these stocks had an average of 24 investors with long positions and the average amount invested in these stocks was $442 million, versus $508 million in SLW’s case. Cintas Corporation (NASDAQ:CTAS) is the most popular stock in this table, while CMS Energy Corporation (NYSE:CMS) is the least popular one with only 19 bullish hedge fund positions. Silver Wheaton Corp. (USA) (NYSE:SLW) is not the most popular stock in this group but hedge fund interest is still above average. This is a slightly positive signal but we’d rather spend our time researching stocks that hedge funds are piling on. In this regard Cintas Corporation (NASDAQ:CTAS) might be a better candidate to consider taking a long position in.

Disclosure: none

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