Should You Buy Rockwell Automation (ROK)?

As one would reasonably expect, specific money managers were leading the bulls’ herd. Generation Investment Management, managed by David Blood and Al Gore, created the biggest position in Rockwell Automation (NYSE:ROK). Generation Investment Management had $82 million invested in the company at the end of the quarter. Israel Englander’s Millennium Management also initiated a $24 million position during the quarter. The other funds with brand new ROK positions are David Harding’s Winton Capital Management, Dmitry Balyasny’s Balyasny Asset Management, and D. E. Shaw’s D E Shaw.

Let’s now review hedge fund activity in other stocks – not necessarily in the same industry as Rockwell Automation (NYSE:ROK) but similarly valued. These stocks are Seagate Technology PLC (NASDAQ:STX), Molson Coors Brewing Company (NYSE:TAP), Nordstrom, Inc. (NYSE:JWN), and WestRock Co (NYSE:WRK). All of these stocks’ market caps are closest to ROK’s market cap.

As you can see these stocks had an average of 45.25 hedge funds with bullish positions and the average amount invested in these stocks was $1469 million. That figure was $555 million in ROK’s case. Molson Coors Brewing Company (NYSE:TAP) is the most popular stock in this table. On the other hand Seagate Technology PLC (NASDAQ:STX) is the least popular one with only 31 bullish hedge fund positions. Rockwell Automation (NYSE:ROK) 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 TAP might be a better candidate to consider a long position.