Terex Corporation (TEX): Are Hedge Funds Right About This Stock?

Since Terex Corporation (NYSE:TEX) has experienced declining sentiment from the entirety of the hedge funds we track, it’s easy to see that there was a specific group of money managers who sold off their full holdings by the end of the third quarter. Interestingly, Jacob Doft’s Highline Capital Management said goodbye to the largest investment of the “upper crust” of funds monitored by Insider Monkey, comprising close to $14.6 million in stock. Thomas Steyer’s fund, Farallon Capital, also sold off its position, about $10.1 million worth of TEX shares. These transactions are intriguing to say the least, as total hedge fund interest dropped by 6 funds by the end of the third quarter.

Let’s go over hedge fund activity in other stocks – not necessarily in the same industry as Terex Corporation (NYSE:TEX) but similarly valued. These stocks are Rowan Companies PLC (NYSE:RDC), Cavium Inc (NASDAQ:CAVM), Washington Federal Inc. (NASDAQ:WAFD), and Pampa Energia S.A. (ADR) (NYSE:PAM). This group of stocks’ market valuations are similar to TEX’s market valuation.

As you can see these stocks had an average of 20 hedge funds with bullish positions and the average amount invested in these stocks was $269 million. That figure was $357 million in TEX’s case. Rowan Companies PLC (NYSE:RDC) is the most popular stock in this table. On the other hand Washington Federal Inc. (NASDAQ:WAFD) is the least popular one with only 13 bullish hedge fund positions. Terex Corporation (NYSE:TEX) 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 RDC might be a better candidate to consider a long position.

Disclosure: none.