NOW Inc (DNOW): Are Hedge Funds Right About This Stock?

We already know that not all hedge funds are bullish on the stock and some hedge funds actually dumped their positions entirely. It’s worth mentioning that First Eagle Investment Management dumped the biggest investment of all the hedgies monitored by Insider Monkey, comprising about $152.5 million in stock. David Costen Haley’s fund, HBK Investments, also said goodbye to its stock, about $1.6 million worth.

Let’s now take a look at hedge fund activity in other stocks similar to NOW Inc (NYSE:DNOW). These stocks are The New York Times Company (NYSE:NYT), Parkway Properties Inc (NYSE:PKY), Nektar Therapeutics (NASDAQ:NKTR), and Commercial Metals Company (NYSE:CMC). This group of stocks’ market valuations are closest to DNOW’s market valuation.

As you can see these stocks had an average of 17 hedge funds with bullish positions and the average amount invested in these stocks was $175 million. That figure was $227 million in DNOW’s case. The New York Times Company (NYSE:NYT) is the most popular stock in this table, while Parkway Properties Inc (NYSE:PKY) is the least popular one with only 11 bullish hedge fund positions. NOW Inc (NYSE:DNOW) 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 The New York Times Company (NYSE:NYT) might be a better candidate to consider taking a long position in.

Disclosure: None