Pentair plc. Ordinary Share (PNR): Are Hedge Funds Right About This Stock?

Seeing as Pentair, Ltd. Registered Share (NYSE:PNR) has weathered a decline in interest from the aggregate hedge fund industry, it’s safe to say that there lies a certain “tier” of money managers who were dropping their entire stakes last quarter. Intriguingly, Dmitry Balyasny’s Balyasny Asset Management got rid of the biggest stake of the 700 funds monitored by Insider Monkey, comprising close to $33.5 million in stock, and Steve Cohen’s Point72 Asset Management was right behind this move, as the fund said goodbye to about $28.8 million worth of shares.

Let’s also examine hedge fund activity in other stocks similar to Pentair, Ltd. Registered Share (NYSE:PNR). These stocks are Cintas Corporation (NASDAQ:CTAS), Hasbro, Inc. (NASDAQ:HAS), Harris Corporation (NYSE:HRS), and Fiat Chrysler Automobiles NV (NYSE:FCAU). All of these stocks’ market caps resemble PNR’s market cap.

As you can see these stocks had an average of 27 hedge funds with bullish positions and the average amount invested in these stocks was $524 million. That figure was $1.03 billion in PNR’s case. Cintas Corporation (NASDAQ:CTAS) is the most popular stock in this table. On the other hand Hasbro, Inc. (NASDAQ:HAS) is the least popular one with only 22 bullish hedge fund positions. Compared to these stocks Pentair, Ltd. Registered Share (NYSE:PNR) is even less popular than HAS. Considering that hedge funds aren’t fond of this stock in relation to other companies analyzed in this article, it may be a good idea to analyze it in detail and understand why the smart money isn’t behind this stock. This isn’t necessarily bad news. Although it is possible that hedge funds may think the stock is overpriced and view the stock as a short candidate, they may not be very familiar with the bullish thesis. In either case more research is warranted.

Disclosure: None