Is Gladstone Commercial Corporation (GOOD) A Good Stock To Buy?

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With a general bullishness amongst the heavyweights, key money managers were leading the bulls’ herd. Ellington, led by Mike Vranos, established the most outsized position in Gladstone Commercial Corporation (NASDAQ:GOOD). Ellington had $0.2 million invested in the company at the end of the quarter.

Let’s now take a look at hedge fund activity in other stocks similar to Gladstone Commercial Corporation (NASDAQ:GOOD). These stocks are Mercantile Bank Corp. (NASDAQ:MBWM), Western Asset Mortgage Capital Corp (NYSE:WMC), Monarch Casino & Resort, Inc. (NASDAQ:MCRI), and NewLink Genetics Corp (NASDAQ:NLNK). This group of stocks’ market values match GOOD’s market value.

Ticker No of HFs with positions Total Value of HF Positions (x1000) Change in HF Position
MBWM 6 23502 0
WMC 6 6129 2
MCRI 10 46957 -4
NLNK 12 52368 -1

As you can see these stocks had an average of 9 hedge funds with bullish positions and the average amount invested in these stocks was $32 million. That figure was $34 million in GOOD’s case. NewLink Genetics Corp (NASDAQ:NLNK) is the most popular stock in this table. On the other hand Mercantile Bank Corp. (NASDAQ:MBWM) is the least popular one with only 6 bullish hedge fund positions. Gladstone Commercial Corporation (NASDAQ:GOOD) is not the least popular stock in this group but hedge fund interest is still below average. This is a slightly negative signal and we’d rather spend our time researching stocks that hedge funds are piling on. In this regard NLNK might be a better candidate to consider taking a long position in.

Disclosure: None

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