Is Stanley Black & Decker, Inc. (SWK) Going to Burn These Hedge Funds?

Because Stanley Black & Decker, Inc. (NYSE:SWK) has witnessed falling interest from the aggregate hedge fund industry, logic holds that there is a sect of funds that decided to sell off their entire stakes last quarter. Intriguingly, Ken Griffin’s Citadel Investment Group said goodbye to the biggest investment of the 700 funds followed by Insider Monkey, comprising about $30.5 million in stock, and Mark Kingdon’s Kingdon Capital was right behind this move, as the fund sold off about $10.6 million worth. These moves are intriguing to say the least, as total hedge fund interest stayed the same (this is a bearish signal in our experience).

Let’s check out hedge fund activity in other stocks similar to Stanley Black & Decker, Inc. (NYSE:SWK). These stocks are HCP, Inc. (NYSE:HCP), Molson Coors Brewing Company (NYSE:TAP), Ingersoll-Rand PLC (NYSE:IR), and American Airlines Group Inc (NASDAQ:AAL). This group of stocks’ market caps resemble SWK’s market cap.

As you can see these stocks had an average of 40 hedge funds with bullish positions and the average amount invested in these stocks was $1.72 billion. That figure was $767 million in SWK’s case. Molson Coors Brewing Company (NYSE:TAP) is the most popular stock in this table. On the other hand HCP, Inc. (NYSE:HCP) is the least popular one with only 14 bullish hedge fund positions. Stanley Black & Decker, Inc. (NYSE:SWK) is not the least popular stock in this group but hedge fund interest is still below average. This is a slightly negative signal and we’d rather spend our time researching stocks that hedge funds are piling on. In this regard TAP might be a better candidate to consider a long position.

Disclosure: None