Is Caesarstone Ltd (CSTE) Poised for a Rebound?

Now, specific money managers have jumped into Caesarstone Ltd (NASDAQ:CSTE) headfirst. Millennium Management, one of the 10 largest hedge funds in the world, initiated the most valuable position in Caesarstone Ltd (NASDAQ:CSTE). Millennium Management had $2.9 million invested in the company at the end of the quarter. Peter Rathjens, Bruce Clarke and John Campbell’s Arrowstreet Capital also made a $1.3 million investment in the stock during the quarter. The following funds were also among the new CSTE investors: Ken Griffin’s Citadel Investment Group and Neil Chriss’ Hutchin Hill Capital.

Let’s now take a look at hedge fund activity in other stocks similar to Caesarstone Ltd (NASDAQ:CSTE). We will take a look at CNOOC Limited (ADR) (NYSE:CEO), First Cash Financial Services, Inc. (NASDAQ:FCFS), Lakeland Financial Corporation (NASDAQ:LKFN), and Shenandoah Telecommunications Company (NASDAQ:SHEN). This group of stocks’ market valuations are similar to CSTE’s market valuation.

As you can see these stocks had an average of 11 hedge funds with bullish positions and the average amount invested in these stocks was $75 million. That figure was $126 million in CSTE’s case. First Cash Financial Services, Inc. (NASDAQ:FCFS) is the most popular stock in this table. On the other hand Lakeland Financial Corporation (NASDAQ:LKFN) is the least popular one with only 8 bullish hedge fund positions. Caesarstone Ltd (NASDAQ:CSTE) 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 FCFS might be a better candidate to consider taking a long position in.

Disclosure: None