Should You Avoid Watts Water Technologies Inc (WTS)?

Now that we’ve mentioned the most bullish investors, let’s also take a look at some funds that cut their entire stakes in the stock during the third quarter. It’s worth mentioning that D E Shaw, one of the biggest hedge funds in the world cut the largest position of all the hedgies monitored by Insider Monkey, comprising close to $0.9 million in Watts Water Technologies Inc (NYSE:WTS) stock, and Israel Englander’s Millennium Management was right behind this move, as the fund said goodbye to about $0.4 million worth of shares.

Let’s check out hedge fund activity in other stocks – not necessarily in the same industry as Watts Water Technologies Inc (NYSE:WTS) but similarly valued. These stocks are PBF Energy Inc (NYSE:PBF), ABM Industries, Inc. (NYSE:ABM), Hilltop Holdings Inc. (NYSE:HTH), and Dorman Products Inc. (NASDAQ:DORM). This group of stocks’ market valuations match WTS’s market valuation.

As you can see these stocks had an average of 15 hedge funds with bullish positions and the average amount invested in these stocks was $180 million. That figure was $434 million in WTS’s case. PBF Energy Inc (NYSE:PBF) is the most popular stock in this table. On the other hand Dorman Products Inc. (NASDAQ:DORM) is the least popular one with only 9 bullish hedge fund positions. Watts Water Technologies Inc (NYSE:WTS) 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 PBF might be a better candidate to consider taking a long position in.

Disclosure: none.