Should You Avoid Watts Water Technologies Inc (WTS)?

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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.

Ticker No of HFs with positions Total Value of HF Positions (x1000) Change in HF Position
PBF 23 497804 -1
ABM 13 93533 -2
HTH 15 34838 1
DORM 9 94022 0

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.

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