Do Hedge Funds Love Synalloy Corporation (SYNL)?

Earlier we told you that the aggregate hedge fund interest in the stock was unchanged and we view this as a negative development. Even though there weren’t any hedge funds dumping their holdings during the third quarter, there weren’t any hedge funds initiating brand new positions. This indicates that hedge funds, at the very best, perceive this stock as dead money and they haven’t identified any viable catalysts that can attract investor attention.

Let’s now review hedge fund activity in other stocks similar to Synalloy Corporation (NASDAQ:SYNL). These stocks are Sphere 3D Corp. (NASDAQ:ANY), Patriot Transportation Holding Inc (NASDAQ:PATI), Southern Connecticut Bancorp Inc. (NYSEAMEX:SSE), and Willbros Group Inc (NYSE:WG). This group of stocks’ market values resemble SYNL’s market value.

As you can see these stocks had an average of seven hedge funds with bullish positions and the average amount invested in these stocks was $12 million, versus $14 million in SYNL’s case. Southern Connecticut Bancorp Inc. (NYSEAMEX:SSE) is the most popular stock in this table. On the other hand Sphere 3D Corp. (NASDAQ:ANY) is the least popular one with only four bullish hedge fund positions. Compared to these stocks, we can notice that hedge funds aren’t fond of Synalloy Corporation (NASDAQ:SYNL) in relation to other companies analyzed in this article. Therefore, it may be a good idea to analyze it in detail and understand why the smart money isn’t behind this stock. This isn’t necessarily bad news. Although it is possible that hedge funds may think the stock is overpriced and view the stock as a short candidate, they may not be very familiar with the bullish thesis. In either case more research is warranted.