Smart Money Continues to Dump Target Corporation (TGT): Should You Be Worried?

Because Target Corporation (NYSE:TGT) has experienced bearish sentiment from the aggregate hedge fund industry, logic holds that there lies a certain “tier” of money managers who were dropping their positions entirely last quarter. Intriguingly, Principal Global Investors’ Columbus Circle Investors dropped the biggest position of all the hedgies followed by Insider Monkey, worth about $93.6 million in stock, and Israel Englander’s Millennium Management was right behind this move, as the fund dumped about $49.4 million worth of TGT shares.

Let’s now take a look at hedge fund activity in other stocks similar to Target Corporation (NYSE:TGT). We will take a look at BCE Inc. (USA) (NYSE:BCE), Infosys Ltd ADR (NYSE:INFY), Bank of Montreal (USA) (NYSE:BMO), and FedEx Corporation (NYSE:FDX). All of these stocks’ market caps match TGT’s market cap.

As you can see these stocks had an average of 25 hedge funds with bullish positions and the average amount invested in these stocks was $1.32 billion. That figure was $703 million in TGT’s case. FedEx Corporation (NYSE:FDX) is the most popular stock in this table. On the other hand BCE Inc. (USA) (NYSE:BCE) is the least popular one with only 16 bullish hedge fund positions. Target Corporation (NYSE:TGT) is not the most popular stock in this group but hedge fund interest is still above average. This is a slightly positive signal but we’d rather spend our time researching stocks that hedge funds are piling on. In this regard FDX might be a better candidate to consider taking a long position in.

Disclosure: None