Is UGI Corp (UGI) A Good Stock To Buy?

Now that we’ve mentioned the most bullish investors, let’s also take a look at some funds that got rid of their entire stakes in the stock during the third quarter. At the top of the heap, First Eagle Investment Management got rid of the largest investment of the “upper crust” of funds tracked by Insider Monkey, worth close to $317 million in stock. Matthew Tewksbury’s fund, Stevens Capital Management, also dropped its stock, about $1.3 million worth.

Let’s check out hedge fund activity in other stocks similar to UGI Corp (NYSE:UGI). We will take a look at Affiliated Managers Group, Inc. (NYSE:AMG), NiSource Inc. (NYSE:NI), Darden Restaurants, Inc. (NYSE:DRI), and Atmos Energy Corporation (NYSE:ATO). All of these stocks’ market caps resemble UGI’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 $436 million, versus $311 million in UGI’s case. Affiliated Managers Group, Inc. (NYSE:AMG) is the most popular stock in this table, while Atmos Energy Corporation (NYSE:ATO) is the least popular one with only 12 bullish hedge fund positions. UGI Corp (NYSE:UGI) 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 AMG might be a better candidate to consider taking a long position in.

Disclosure: none