Is Mobile Mini Inc (MINI) A Good Stock To Buy?

Since Mobile Mini Inc (NASDAQ:MINI) has weathered a decline in interest from the aggregate hedge fund industry, it’s easy to see that there was a specific group of hedge funds that slashed their full holdings in the third quarter. Intriguingly, D E Shaw, one of the biggest hedge funds in the world,dumped the largest investment of the 700 funds monitored by Insider Monkey, valued at an estimated $1.4 million in stock. Jonathan Dawson’s fund, Southport Management, also dumped its stock, about $0.9 million worth.

Let’s now take a look at hedge fund activity in other stocks – not necessarily in the same industry as Mobile Mini Inc (NASDAQ:MINI) but similarly valued. These stocks are Otter Tail Corporation (NASDAQ:OTTR), CSG Systems International, Inc. (NASDAQ:CSGS), TherapeuticsMD Inc (OTC:TXMD), and Quad/Graphics, Inc. (NYSE:QUAD). This group of stocks’ market valuations are similar to MINI’s market valuation.

As you can see these stocks had an average of 15 hedge funds with bullish positions and the average amount invested in these stocks was $88 million. That figure was $55 million in MINI’s case. Quad/Graphics, Inc. (NYSE:QUAD) is the most popular stock in this table. On the other hand Otter Tail Corporation (NASDAQ:OTTR) is the least popular one with only 8 bullish hedge fund positions. Compared to these stocks Mobile Mini Inc (NASDAQ:MINI) is even less popular than OTTR. 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.

Disclosure: None