Is The Ceiling About to Fall On Beacon Roofing Supply, Inc. (BECN)?

Because Beacon Roofing Supply, Inc. (NASDAQ:BECN) has experienced falling interest from the aggregate hedge fund industry, we can see that there was a specific group of hedge funds that elected to cut their full holdings by the end of the third quarter. Intriguingly, Eduardo Abush’s Waterfront Capital Partners dumped the biggest position of the 700 funds tracked by Insider Monkey, worth close to $15 million in stock. Mark Kingdon’s fund, Kingdon Capital, also dumped its stock, about $8.2 million worth. These moves are interesting, as total hedge fund interest was cut by 7 funds by the end of the third quarter.

Let’s go over hedge fund activity in other stocks similar to Beacon Roofing Supply, Inc. (NASDAQ:BECN). We will take a look at MFA Financial, Inc. (NYSE:MFA), Primerica, Inc. (NYSE:PRI), AMC Entertainment Holdings Inc (NYSE:AMC), and Choice Hotels International, Inc. (NYSE:CHH). This group of stocks’ market caps are similar to BECN’s market cap.

As you can see these stocks had an average of 14.5 hedge funds with bullish positions and the average amount invested in these stocks was $139 million. That figure was $429 million in BECN’s case. Primerica, Inc. (NYSE:PRI) is the most popular stock in this table. On the other hand MFA Financial, Inc. (NYSE:MFA) is the least popular one with only 11 bullish hedge fund positions. Compared to these stocks Beacon Roofing Supply, Inc. (NASDAQ:BECN) is more popular among hedge funds and has a lot more money invested in it. 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 despite recent slide in hedge fund ownership.

Disclosure: None