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Is Southwestern Energy Company (SWN) A Good Stock To Buy?

Since Southwestern Energy Company (NYSE:SWN) has experienced bearish sentiment from hedge fund managers, logic holds that there were a few fund managers who sold off their full holdings heading into Q4. At the top of the heap, Steve Cohen’s Point72 Asset Management sold off the biggest stake of the “upper crust” of funds followed by Insider Monkey, worth an estimated $59.4 million in stock, and Glenn Russell Dubin’s Highbridge Capital Management was right behind this move, as the fund dropped about $49.7 million worth of shares. These transactions are intriguing to say the least, as aggregate hedge fund interest dropped by 11 funds heading into Q4.

Let’s also examine hedge fund activity in other stocks similar to Southwestern Energy Company (NYSE:SWN). We will take a look at TFS Financial Corporation (NASDAQ:TFSL), Marvell Technology Group Ltd. (NASDAQ:MRVL), SVB Financial Group (NASDAQ:SIVB), and Yamana Gold Inc. (USA) (NYSE:AUY). This group of stocks’ market valuations match SWN’s market valuation.

Ticker No of HFs with positions Total Value of HF Positions (x1000) Change in HF Position
TFSL 12 162239 2
MRVL 50 1712916 12
SIVB 19 501112 -2
AUY 20 224711 -4

As you can see these stocks had an average of 25 hedge funds with bullish positions and the average amount invested in these stocks was $650 million. That figure was $1.26 billion in SWN’s case. Marvell Technology Group Ltd. (NASDAQ:MRVL) is the most popular stock in this table. On the other hand TFS Financial Corporation (NASDAQ:TFSL) is the least popular one with only 12 bullish hedge fund positions. Southwestern Energy Company (NYSE:SWN) 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 MRVL might be a better candidate to consider a long position.

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