Should You Buy Lowe’s Companies, Inc. (LOW)?

The government requires hedge funds and wealthy investors with over a certain portfolio size to file a report that shows their positions at the end of every quarter. Even though it isn’t the intention, these filings level the playing field for ordinary investors. The latest round of 13F filings discloses the funds’ positions on December 31. We at Insider Monkey have made an extensive database of more than 700 of those elite funds and prominent investors’ filings. In this article, we analyze how these elite funds and prominent investors traded Lowe’s Companies, Inc. (NYSE:LOW) based on those filings.

Lowe’s Companies, Inc. (NYSE:LOW) has experienced an increase in hedge fund interest of late. However, the level and the change in hedge fund popularity aren’t the only variables you need to analyze to decipher hedge funds’ perspectives. A stock may witness a boost in popularity, but it may still be less popular than similarly priced stocks. That’s why at the end of this article we will examine companies such as Diageo plc (ADR) (NYSE:DEO), American Express Company (NYSE:AXP), and Biogen Idec Inc. (NASDAQ:BIIB) to gather more data points.

In today’s marketplace there are a large number of formulas market participants have at their disposal to analyze their stock investments. A couple of the most under-the-radar formulas are hedge fund and insider trading moves. Our experts have shown that, historically, those who follow the best picks of the top investment managers can outperform the S&P 500 by a significant amount (see the details here).

Before we take a closer look at the hedge fund sentiment towards Lowe’s Companies, let’s assess the latest developments surrounding the stock.