Core Molding Technologies, Inc. (CMT): Are Hedge Funds Right About This Stock?

We view hedge fund activity in the stock unfavorable, but in this case there was only a single hedge fund selling its entire position: Laurion Capital Management. One hedge fund selling its entire position doesn’t always imply a bearish intent. Theoretically a hedge fund may decide to sell a promising position in order to invest the proceeds in a more promising idea. However, we don’t think this is the case in this case because only one of the 800+ hedge funds tracked by Insider Monkey identified as a viable investment and initiated a position in the stock (that fund was Two Sigma Advisors).

Let’s now take a look at hedge fund activity in other stocks – not necessarily in the same industry as Core Molding Technologies, Inc. (NYSEMKT:CMT) but similarly valued. We will take a look at DHX Media Ltd (USA) (NASDAQ:DHXM), Corindus Vascular Robotics Inc (NYSEMKT:CVRS), Kona Grill Inc (NASDAQ:KONA), and EVINE Live Inc (NASDAQ:EVLV). This group of stocks’ market values resemble CMT’s market value.

As you can see these stocks had an average of 6 hedge funds with bullish positions and the average amount invested in these stocks was $37 million. That figure was $12 million in CMT’s case. EVINE Live Inc (NASDAQ:EVLV) is the most popular stock in this table. On the other hand Corindus Vascular Robotics Inc (NYSEMKT:CVRS) is the least popular one with only 4 bullish hedge fund positions. Core Molding Technologies, Inc. (NYSEMKT:CMT) 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 EVLV might be a better candidate to consider taking a long position in.

Disclosure: none.