Micron Technology, Inc. (MU) Making Gains As DRAM, NAND Sentiment Improves

Because Micron Technology, Inc. (NASDAQ:MU) has faced bearish sentiment from the smart money, logic holds that there exists a select few hedgies who sold off their entire stakes last quarter. At the top of the heap, David Cohen and Harold Levy’s Iridian Asset Management sold off the biggest position of the 760 funds tracked by Insider Monkey, worth about $161.8 million in stock. Ken Griffin’s fund, Citadel Investment Group, also cut its stock, about $149.9 million worth. These moves are intriguing to say the least, as aggregate hedge fund interest dropped by 13 funds last quarter.

Let’s now take a look at hedge fund activity in other stocks similar to Micron Technology, Inc. (NASDAQ:MU). These stocks are Cenovus Energy Inc (USA) (NYSE:CVE), NetEase, Inc (ADR) (NASDAQ:NTES), Cincinnati Financial Corporation (NASDAQ:CINF), and XL Group plc (NYSE:XL). This group of stocks’ market values resemble MU’s market value.

Ticker No of HFs with positions Total Value of HF Positions (x1000) Change in HF Position
CVE 18 645588 -2
NTES 31 2274907 6
CINF 17 435236 3
XL 24 811329 0

As you can see these stocks had an average of 23 hedge funds with bullish positions and the average amount invested in these stocks was $1.04 billion. That figure was $801 million in MU’s case. NetEase, Inc (ADR) (NASDAQ:NTES) is the most popular stock in this table. On the other hand Cincinnati Financial Corporation (NASDAQ:CINF) is the least popular one with only 17 bullish hedge fund positions. Compared to these stocks Micron Technology, Inc. (NASDAQ:MU) is more popular among hedge funds. 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.

Disclosure: None