Is DTE Stock A Buy or Sell?

The 800+ hedge funds and famous money managers tracked by Insider Monkey have already compiled and submitted their 13F filings for the fourth quarter, which unveil their equity positions as of December 31st. We went through these filings, fixed typos and other more significant errors and identified the changes in hedge fund portfolios. Our extensive review of these public filings is finally over, so this article is set to reveal the smart money sentiment towards DTE Energy Company (NYSE:DTE).

Is DTE stock a buy? Hedge funds were betting on the stock. The number of long hedge fund positions advanced by 1 lately. DTE Energy Company (NYSE:DTE) was in 29 hedge funds’ portfolios at the end of the fourth quarter of 2020. The all time high for this statistic is 35. Our calculations also showed that DTE isn’t among the 30 most popular stocks among hedge funds (click for Q4 rankings). There were 28 hedge funds in our database with DTE holdings at the end of September.

Bruce Kovner of Caxton Associates LP

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Do Hedge Funds Think DTE Is A Good Stock To Buy Now?

At the end of the fourth quarter, a total of 29 of the hedge funds tracked by Insider Monkey held long positions in this stock, a change of 4% from the previous quarter. Below, you can check out the change in hedge fund sentiment towards DTE over the last 22 quarters. With the smart money’s capital changing hands, there exists a few noteworthy hedge fund managers who were adding to their holdings considerably (or already accumulated large positions).

The largest stake in DTE Energy Company (NYSE:DTE) was held by Adage Capital Management, which reported holding $44.1 million worth of stock at the end of December. It was followed by AQR Capital Management with a $41.8 million position. Other investors bullish on the company included Millennium Management, Two Sigma Advisors, and D E Shaw. In terms of the portfolio weights assigned to each position Socorro Asset Management allocated the biggest weight to DTE Energy Company (NYSE:DTE), around 3.76% of its 13F portfolio. Ecofin Ltd is also relatively very bullish on the stock, earmarking 1.52 percent of its 13F equity portfolio to DTE.

With a general bullishness amongst the heavyweights, key money managers have been driving this bullishness. Holocene Advisors, managed by Brandon Haley, established the most valuable position in DTE Energy Company (NYSE:DTE). Holocene Advisors had $18.2 million invested in the company at the end of the quarter. Bruce Kovner’s Caxton Associates LP also made a $8.7 million investment in the stock during the quarter. The following funds were also among the new DTE investors: Mark R. Freeman’s Socorro Asset Management, Paul Marshall and Ian Wace’s Marshall Wace LLP, and Jinghua Yan’s TwinBeech Capital.

Let’s also examine hedge fund activity in other stocks – not necessarily in the same industry as DTE Energy Company (NYSE:DTE) but similarly valued. We will take a look at Equifax Inc. (NYSE:EFX), Cloudflare, Inc. (NYSE:NET), Perusahaan Perseroan (Persero) PT Telekomunikasi Indonesia Tbk (NYSE:TLK), Lennar Corporation (NYSE:LEN), Valero Energy Corporation (NYSE:VLO), KKR & Co Inc. (NYSE:KKR), and ViacomCBS Inc. (NASDAQ:VIAC). This group of stocks’ market valuations resemble DTE’s market valuation.

View table here if you experience formatting issues.

As you can see these stocks had an average of 41.1 hedge funds with bullish positions and the average amount invested in these stocks was $1516 million. That figure was $310 million in DTE’s case. Cloudflare, Inc. (NYSE:NET) is the most popular stock in this table. On the other hand Perusahaan Perseroan (Persero) PT Telekomunikasi Indonesia Tbk (NYSE:TLK) is the least popular one with only 4 bullish hedge fund positions. DTE Energy Company (NYSE:DTE) is not the least popular stock in this group but hedge fund interest is still below average. Our overall hedge fund sentiment score for DTE is 53.2. Stocks with higher number of hedge fund positions relative to other stocks as well as relative to their historical range receive a higher sentiment score. Our calculations showed that top 30 most popular stocks among hedge funds returned 81.2% in 2019 and 2020, and outperformed the S&P 500 ETF (SPY) by 26 percentage points. These stocks gained 12.2% in 2021 through April 12th and still beat the market by 1.5 percentage points. A small number of hedge funds were also right about betting on DTE as the stock returned 12.7% since the end of the fourth quarter (through 4/12) and outperformed the market by an even larger margin.

Disclosure: None. This article was originally published at Insider Monkey.