Is Torchmark Corporation (TMK) A Good Stock To Buy?

Because Torchmark Corporation (NYSE:TMK) has weathered a decline in interest from hedge fund managers, it’s safe to say that there exists a select few hedgies who sold off their positions entirely heading into Q4. Interestingly, David Harding’s Winton Capital Management dropped the biggest stake of the “upper crust” of funds watched by Insider Monkey, totaling close to $25.4 million in stock, and Anand Parekh’s Alyeska Investment Group was right behind this move, as the fund sold off about $4.4 million worth of shares.

Let’s check out hedge fund activity in other stocks similar to Torchmark Corporation (NYSE:TMK). These stocks are National Retail Properties, Inc. (NYSE:NNN), Msci Inc (NYSE:MSCI), Ralph Lauren Corp (NYSE:RL), and Sabre Corp (NASDAQ:SABR). All of these stocks’ market caps resemble TMK’s market cap.

As you can see these stocks had an average of 25 funds with bullish positions and the average amount invested in these stocks was $744 million. That figure was $614 million in TMK’s case. Sabre Corp (NASDAQ:SABR) is the most popular stock in this table. On the other hand National Retail Properties, Inc. (NYSE:NNN) is the least popular one with only 20 bullish hedge fund positions. Compared to these stocks Torchmark Corporation (NYSE:TMK) is even less popular than National Retail Properties, Inc. (NYSE:NNN). Considering that hedge funds aren’t fond of this stock in relation to other companies analyzed in this article, it may be a good idea to analyze it in detail and understand why the smart money isn’t behind this stock. This isn’t necessarily bad news. Although it is possible that hedge funds may think the stock is overpriced and view the stock as a short candidate, they may not be very familiar with the bullish thesis. In either case more research is warranted.

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