Archrock Inc (AROC): Are Hedge Funds Right About This Stock?

With a general bullishness amongst the heavyweights, key hedge funds were leading the bulls’ herd. Point72 Asset Management, led by Steve Cohen, established the most outsized position in Archrock Inc (NYSE:AROC). Point72 Asset Management had $6.1 million invested in the company at the end of the quarter. Glenn Russell Dubin’s Highbridge Capital Management also initiated a $1.7 million position during the quarter. The other funds with new positions in the stock are Peter Rathjens, Bruce Clarke and John Campbell’s Arrowstreet Capital, George Hall’s Clinton Group, and Andrew Weiss’ Weiss Asset Management.

Let’s go over hedge fund activity in other stocks – not necessarily in the same industry as Archrock Inc (NYSE:AROC) but similarly valued. These stocks are Ply Gem Holdings Inc (NYSE:PGEM), Kulicke and Soffa Industries Inc. (NASDAQ:KLIC), Wabash National Corporation (NYSE:WNC), and Nevsun Resources (USA) (NYSEAMEX:NSU). This group of stocks’ market valuations match AROC’s market valuation.

As you can see these stocks had an average of 17 funds with bullish positions and the average amount invested in these stocks was $68 million. That figure was $176 million in AROC’s case. Ply Gem Holdings Inc (NYSE:PGEM) is the most popular stock in this table. On the other hand Nevsun Resources (USA) (NYSEAMEX:NSU) is the least popular one with only 12 investors having reported long positions. Archrock Inc (NYSE:AROC) 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 Ply Gem Holdings Inc (NYSE:PGEM) might be a better candidate to consider taking a long position in.

Disclosure: none