Is Agree Realty Corporation (ADC) A Good Stock To Buy?

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As industrywide interest jumped, key money managers were leading the bulls’ herd. D. E. Shaw’s D E Shaw initiated the biggest position in Agree Realty Corporation (NYSE:ADC). D E Shaw had $0.5 million invested in the company at the end of the quarter. Jim Simons’ Renaissance Technologies also made a $0.4 million investment in the stock during the quarter. The other funds with new positions in the stock are Robert B. Gillam’s McKinley Capital Management and Matthew Hulsizer’s PEAK6 Capital Management.

Let’s check out hedge fund activity in other stocks – not necessarily in the same industry as Agree Realty Corporation (NYSE:ADC) but similarly valued. We will take a look at Gibraltar Industries Inc (NASDAQ:ROCK), The Buckle, Inc. (NYSE:BKE), BNC Bancorp (NASDAQ:BNCN), and Osisko Gold Royalties Ltd (NYSE:OR). This group of stocks’ market values are similar to ADC’s market value.

Ticker No of HFs with positions Total Value of HF Positions (x1000) Change in HF Position
ROCK 23 144533 2
BKE 15 114776 3
BNCN 14 58271 -1
OR 5 13875 5

As you can see these stocks had an average of 14 hedge funds with bullish positions and the average amount invested in these stocks was $83 million. That figure was $39 million in ADC’s case. Gibraltar Industries Inc (NASDAQ:ROCK) is the most popular stock in this table. On the other hand Osisko Gold Royalties Ltd (NYSE:OR) is the least popular one with only 5 bullish hedge fund positions. Agree Realty Corporation (NYSE:ADC) is not the least popular stock in this group but hedge fund interest is still below average. This is a slightly negative signal and we’d rather spend our time researching stocks that hedge funds are piling on. In this regard ROCK might be a better candidate to consider taking a long position in.

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Disclosure: None




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