Five Aerospace Stocks Hedge Funds Like for Q2

#3 Textron Inc. (NYSE:TXT)

 – Investors with long positions (as of March 31) : 30

 – Aggregate value of investors’ holdings (as of March 31): $570.83 million

Amid a 13.16% decline in Textron Inc. (NYSE:TXT)’s stock during the first quarter, the ownership of the company among funds tracked by Insider Monkey declined by two and the aggregate value of their holdings in it came down by $353.6 million. Hedge funds that sold off their entire stakes in Textron Inc. (NYSE:TXT) during that period included billionaire Andreas Halvorsen‘s Viking Global and Christopher Medlock James‘ Partner Fund Management. While Textron’s stock did manage to recoup some of the losses it incurred in the previous quarter early in April, it has been drifting lower since the company reported its first quarter financial results on April 20 and currently trades down by 10.34% year-to-date. Nevertheless, these declines have made the stock, currently trading at a trailing P/E ratio of 14.77, significantly cheaper compared to its peers in the aerospace industry, which trade at an average trailing P/E of 19.15.

#2 Boeing Co (NYSE:BA)

 – Investors with long positions (as of March 31) : 37

 – Aggregate value of investors’ holdings (as of March 31): $1.02 billion

Although the number of hedge funds in our system long Boeing Co (NYSE:BA) declined by five during the first quarter, the aggregate value of their holdings in the aerospace giant saw a marginal increase of 3.7% during the same period. Boeing Co (NYSE:BA)’s stock slumped on May 31, increasing its year-to-date loss to 13.84%, owing to the announcement made by the company last Friday that its program to supply KC-46 aerial refueling tankers to the U.S Air Force will be delayed. According to recent reports, the company is expected to win a $2.9 billion contract from the UK defense ministry for supplying 50 new Apache attack helicopters. On May 31, analysts at Goldman Sachs reiterated their ‘Sell’ rating on the stock while setting a price target of $101 on it, which represents a potential downside of almost 20% from the stock’s current trading price. Billionaire Cliff Asness‘ AQR Capital Management increased its stake in the company by 7% to 1.12 million shares during the first quarter.

#1 United Technologies Corporation (NYSE:UTX)

 – Investors with long positions (as of March 31) : 51

 – Aggregate value of investors’ holdings (as of March 31): $3.82 billion

United Technologies Corporation (NYSE:UTX) was the most popular aerospace stock among the funds tracked by Insider Monkey at the end of the first quarter. During the quarter, its ownership among those funds increased by seven and the aggregate value of their holdings in it jumped by 18.7%. Despite falling by over 5% since the time United Technologies Corporation (NYSE:UTX) came out with its first quarter results, shares of the company are still trading up by nearly 4% in 2016. The stock currently sports an average rating of ‘Overweight’ and an average price target of $112.50 from the 22 leading analysts and research firms on the Street who cover it. Having increased its stake in United Technologies by 2% to 8.37 million shares during the first quarter, billionaire Ken Fisher‘s Fisher Asset Management continued to remain the company’s largest shareholder as of March 31 among the 51 funds covered by Insider Monkey which owned it.

Disclosure: None