Is U.S. Bancorp (USB) A Good Stock To Buy?

Since U.S. Bancorp (NYSE:USB) has witnessed a bearish sentiment from hedge fund managers, logic holds that there lies a certain “tier” of funds that elected to cut their full holdings heading into Q4. It’s worth mentioning that Renaissance Technologies cut the largest stake of all the hedgies followed by Insider Monkey, totaling close to $25.8 million in call options., and Daniel S. Och’s OZ Management was right behind this move, as the fund dumped about $23.9 million worth. These moves are important to note, as total hedge fund interest stayed the same (this is a bearish signal in our experience).

Let’s also examine hedge fund activity in other stocks similar to U.S. Bancorp (NYSE:USB). We will take a look at UBS Group AG (USA) (NYSE:UBS), Biogen Inc. (NASDAQ:BIIB), Mondelez International Inc (NASDAQ:MDLZ), and NTT Docomo Inc (ADR) (NYSE:DCM). All of these stocks’ market caps are similar to U.S. Bancorp (NYSE:USB)’s market cap.

As you can see, these stocks had an average of 37 hedge funds with bullish positions and the average amount invested in these stocks was $2.73 billion. That figure was $5.10 billion in U.S. Bancorp (NYSE:USB)’s case. Mondelez International Inc (NASDAQ:MDLZ) is the most popular stock in this table. On the other hand, NTT Docomo Inc (ADR) (NYSE:DCM) is the least popular one with only 7 bullish hedge fund positions. U.S. Bancorp (NYSE:USB) 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, Mondelez International Inc (NASDAQ:MDLZ) might be a better candidate to consider a long position.