Is Alpha Pro Tech, Ltd. (APT) A Good Stock To Buy?

As one would reasonably expect, key hedge funds were breaking ground themselves. Apart from Millennium Management, Matthew Hulsizer’s PEAK6 Capital Management also initiated a CALL option position worth $20,000 during the quarter.

Let’s go over hedge fund activity in other stocks – not necessarily in the same industry as Alpha Pro Tech, Ltd. (NYSEMKT:APT) but similarly valued. We will take a look at Qumu Corp (NASDAQ:QUMU), General Employment Enterprises, Inc. (NYSEMKT:JOB), Roka Bioscience Inc (NASDAQ:ROKA), and CASI Pharmaceuticals Inc (NASDAQ:CASI). All of these stocks’ market caps are similar to Alpha Pro Tech, Ltd. (NYSEMKT:APT)’s market cap.

As you can see, these stocks had an average of 5 hedge funds with bullish positions and the average amount invested in these stocks was $6 million. That figure was $3 million in Alpha Pro Tech, Ltd. (NYSEMKT:APT)’s case. Roka Bioscience Inc (NASDAQ:ROKA) is the most popular stock in this table. On the other hand, Qumu Corp (NASDAQ:QUMU) is the least popular one with only 4 bullish hedge fund positions. Compared to these stocks, Alpha Pro Tech, Ltd. (NYSEMKT:APT) is even less popular than Qumu Corp (NASDAQ:QUMU). Considering that hedge funds aren’t fond of this stock in relation to other companies analyzed in this article, 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.