Is Citi Trends, Inc. (CTRN) A Good Stock To Buy?

As industrywide interest jumped, some big names have been driving this bullishness. Ken Grossman and Glen Schneider of SG Capital Management established the biggest position in Citi Trends, Inc. (NASDAQ:CTRN). SG Capital Management had $1.6 million invested in the company at the end of the quarter. Mark Coe’s Coe Capital Management also made a $1.3 million investment in the stock during the quarter. The other funds with new positions in the stock are Peter Algert and Kevin Coldiron’s Algert Coldiron Investors, Ken Griffin’s Citadel Investment Group, and Gavin Saitowitz and Cisco J. del Valle’s Springbok Capital.

Let’s go over hedge fund activity in other stocks – not necessarily in the same industry as Citi Trends, Inc. (NASDAQ:CTRN) but similarly valued. We will take a look at Nam Tai Property Inc (NYSE:NTP), Digi International Inc. (NASDAQ:DGII), Paratek Pharmaceuticals Inc (NASDAQ:PRTK), and MannKind Corporation (NASDAQ:MNKD). This group of stocks’ market values are closest to CTRN’s market value.

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 $30 million. That figure was $47 million in CTRN’s case. Paratek Pharmaceuticals Inc (NASDAQ:PRTK) is the most popular stock in this table. On the other hand Nam Tai Property Inc (NYSE:NTP) is the least popular one with only 6 bullish hedge fund positions. Citi Trends, Inc. (NASDAQ:CTRN) 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 PRTK might be a better candidate to consider taking a long position in.

Disclosure: None