What Do Hedge Funds Think of ADT Corp (ADT)?

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Because ADT Corp (NYSE:ADT) has witnessed bearish sentiment from the smart money, it’s safe to say that there is a sect of fund managers who sold off their positions entirely last quarter. It’s worth mentioning that Dmitry Balyasny’s Balyasny Asset Management sold off the largest position of all the hedgies monitored by Insider Monkey, comprising close to $19.4 million in call options., and Dmitry Balyasny’s Balyasny Asset Management was right behind this move, as the fund dropped about $3.4 million worth. These moves are interesting, as aggregate hedge fund interest fell by 6 funds last quarter.

Let’s now review hedge fund activity in other stocks similar to ADT Corp (NYSE:ADT). We will take a look at FireEye Inc (NASDAQ:FEYE), Edgewell Personal Care Company (NYSE:EPC), Nuance Communications Inc. (NASDAQ:NUAN), and Tegna Inc (NYSE:TGNA). This group of stocks’ market valuations are similar to ADT’s market valuation.

Ticker No of HFs with positions Total Value of HF Positions (x1000) Change in HF Position
FEYE 37 383976 2
EPC 34 749305 18
NUAN 30 1153747 5
TGNA 21 1012114 1

As you can see these stocks had an average of 30.5 hedge funds with bullish positions and the average amount invested in these stocks was $825 million. That figure was $211 million in ADT’s case. FireEye Inc (NASDAQ:FEYE) is the most popular stock in this table. On the other hand Tegna Inc (NYSE:TGNA) is the least popular one with only 21 bullish hedge fund positions. ADT Corp (NYSE:ADT) 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 FEYE might be a better candidate to consider a long position.

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