Pembina Pipeline Corp (PBA): 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 dropped their positions entirely. Intriguingly, Vince Maddi and Shawn Brennan’s SIR Capital Management dropped the biggest investment of all the investors monitored by Insider Monkey, totaling an estimated $4 million in stock, and D. E. Shaw’s D E Shaw was right behind this move, as the fund dropped about $0.6 million worth of shares.

Let’s now review hedge fund activity in other stocks – not necessarily in the same industry as Pembina Pipeline Corp (NYSE:PBA) but similarly valued. These stocks are Ameren Corp (NYSE:AEE), Grupo Financero Sntdr Mxco SAB de CV ADR (NYSE:BSMX), Silver Wheaton Corp. (USA) (NYSE:SLW), and Global Payments Inc (NYSE:GPN). This group of stocks’ market valuations match PBA’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 $350 million. That figure was $46 million in PBA’s case. Silver Wheaton Corp. (USA) (NYSE:SLW) is the most popular stock in this table. On the other hand Santander Mexico Fincl Gp SAB deCV (ADR) (NYSE:BSMX) is the least popular one with only 9 bullish hedge fund positions. Pembina Pipeline Corp (NYSE:PBA) 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 SLW might be a better candidate to consider taking a long position in.

Disclosure: None