Is Olympic Steel, Inc. (ZEUS) A Good Stock to Buy?

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We already know that not all hedge funds are bullish on the stock and some hedge funds actually dropped their positions entirely. It’s worth mentioning that Ken Griffin’s Citadel Investment Group dropped the biggest investment of the “upper crust” of funds watched by Insider Monkey, comprising about $1.6 million in stock, and Joshua Packwood and Schuster Tanger’s Radix Partners was right behind this move, as the fund said goodbye to about $0.4 million worth of shares.

Let’s now take a look at hedge fund activity in other stocks – not necessarily in the same industry as Olympic Steel, Inc. (NASDAQ:ZEUS) but similarly valued. We will take a look at Patriot National Inc (NYSE:PN), JA Solar Holdings Co., Ltd. (ADR) (NASDAQ:JASO), LSB Industries, Inc. (NYSE:LXU), and Star Bulk Carriers Corp. (NASDAQ:SBLK). All of these stocks’ market caps resemble ZEUS’s market cap.

Ticker No of HFs with positions Total Value of HF Positions (x1000) Change in HF Position
PN 8 16926 3
JASO 6 4830 -2
LXU 8 31284 -1
SBLK 6 163101 -1

As you can see these stocks had an average of 7 hedge funds with bullish positions and the average amount invested in these stocks was $54 million. That figure was $15 million in ZEUS’s case. Patriot National Inc (NYSE:PN) is the most popular stock in this table. On the other hand JA Solar Holdings Co., Ltd. (ADR) (NASDAQ:JASO) is the least popular one with only 6 bullish hedge fund positions. Compared to these stocks Olympic Steel, Inc. (NASDAQ:ZEUS) is more popular among hedge funds. Considering that hedge funds are fond of this stock in relation to its market cap peers, it may be a good idea to analyze it in detail and potentially include it in your portfolio.

Disclosure: None

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