Is GMS Inc (GMS) A Good Stock To Buy According To Hedge Funds?

Now that we’ve mentioned the most bullish investors, let’s also take a look at some funds that dumped their entire stakes in the stock during the third quarter. It’s worth mentioning that Stuart J. Zimmer’s Zimmer Partners dumped the biggest position of the “upper crust” of funds monitored by Insider Monkey, comprising about $7.4 million in stock, and Ira Unschuld’s Brant Point Investment Management was right behind this move, as the fund sold off about $4.4 million worth of shares.

Let’s now take a look at hedge fund activity in other stocks – not necessarily in the same industry as GMS Inc (NYSE:GMS) but similarly valued. These stocks are Penn West Petroleum Ltd (USA) (NYSE:PWE), General American Investors Co. Inc. (NYSE:GAM), Capstead Mortgage Corporation (NYSE:CMO), and Nordic American Tanker Ltd (NYSE:NAT). All of these stocks’ market caps are closest to GMS’s market cap.

As you can see these stocks had an average of 9.75 hedge funds with bullish positions and the average amount invested in these stocks was $42 million. That figure was $38 million in GMS’s case. Penn West Petroleum Ltd (USA) (NYSE:PWE) is the most popular stock in this table. On the other hand General American Investors Co. Inc. (NYSE:GAM) is the least popular one with only 4 bullish hedge fund positions. GMS Inc (NYSE:GMS) 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 PWE might be a better candidate to consider taking a long position in.

Disclosure: None