Is Dril-Quip, Inc. (DRQ) A Good Stock To Buy?

As industry-wide interest jumped, specific money managers have jumped into Dril-Quip, Inc. (NYSE:DRQ) headfirst. Two Sigma Advisors, managed by John Overdeck and David Siegel, created the most outsized position in Dril-Quip, Inc. (NYSE:DRQ). Two Sigma Advisors had $3.3 million invested in the company at the end of the quarter. Steve Cohen’s Point72 Asset Management also made a $3.1 million investment in the stock during the quarter. The following funds were also among the new DRQ investors: Neil Chriss’ Hutchin Hill Capital, James Dondero’s Highland Capital Management, and Joshua Packwood and Schuster Tanger’s Radix Partners.

Let’s check out hedge fund activity in other stocks – not necessarily in the same industry as Dril-Quip, Inc. (NYSE:DRQ) but similarly valued. These stocks are Terex Corporation (NYSE:TEX), Rowan Companies PLC (NYSE:RDC), Cavium Inc (NASDAQ:CAVM), and Washington Federal Inc. (NASDAQ:WAFD). All of these stocks’ market caps resemble DRQ’s market cap.

As you can see these stocks had an average of 22 hedge funds with bullish positions and the average amount invested in these stocks was $287 million. That figure was $146 million in DRQ’s case. Rowan Companies PLC (NYSE:RDC) is the most popular stock in this table. On the other hand Washington Federal Inc. (NASDAQ:WAFD) is the least popular one with only 13 bullish hedge fund positions. Dril-Quip, Inc. (NYSE:DRQ) 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 RDC might be a better candidate to consider a long position in.

Disclosure: None