Is Flexsteel Industries, Inc. (FLXS) a Good Buy?

Intriguingly, Jim Simons’s Renaissance Technologies said goodbye to the largest investment of the “upper crust” of funds followed by Insider Monkey, valued at about $0.5 million in stock. Ken Griffin’s fund, Citadel Investment Group, also dumped its stock, about $0.2 million worth. These moves are important to note, as aggregate hedge fund interest stayed the same (this is a bearish signal in our experience).

Let’s also examine hedge fund activity in other stocks similar to Flexsteel Industries, Inc. (NASDAQ:FLXS). We will take a look at Tokai Pharmaceuticals Inc (NASDAQ:TKAI), MCBC Holdings Inc (NASDAQ:MCFT), Mazor Robotics Ltd – ADR (NASDAQ:MZOR), and Fluidigm Corporation (NASDAQ:FLDM). This group of stocks’ market caps match FLXS’s market cap.

As you can see these stocks had an average of 7.75 hedge funds with bullish positions and the average amount invested in these stocks was $61 million. That figure was $3 million in FLXS’s case. Fluidigm Corporation (NASDAQ:FLDM) is the most popular stock in this table. On the other hand Mazor Robotics Ltd – ADR (NASDAQ:MZOR) is the least popular one with only 6 bullish hedge fund positions. Compared to these stocks Flexsteel Industries, Inc. (NASDAQ:FLXS) is even less popular than MZOR. 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.