Is Oriental Financial Group Inc. (OFG) A Good Stock To Buy?

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With a general bullishness amongst the heavyweights, specific money managers have been driving this bullishness. Polaris Capital Management, led by Bernard Horn, created the most outsized position in Oriental Financial Group Inc. (NYSE:OFG). Polaris Capital Management had $2.7 million invested in the company at the end of the quarter. Israel Englander’s Millennium Management also initiated a $1.2 million position during the quarter. The other funds with brand new OFG positions are D. E. Shaw’s D E Shaw, John Overdeck and David Siegel’s Two Sigma Advisors, and Peter Algert and Kevin Coldiron’s Algert Coldiron Investors.

Let’s now review hedge fund activity in other stocks – not necessarily in the same industry as Oriental Financial Group Inc. (NYSE:OFG) but similarly valued. We will take a look at OraSure Technologies, Inc. (NASDAQ:OSUR), QAD Inc. (NASDAQ:QADA), Myokardia Inc (NASDAQ:MYOK), and Barnes & Noble Education Inc (NYSE:BNED). This group of stocks’ market valuations match OFG’s market valuation.

Ticker No of HFs with positions Total Value of HF Positions (x1000) Change in HF Position
OSUR 21 73743 -2
QADA 11 52569 1
MYOK 15 81279 9
BNED 14 94174 -2

As you can see these stocks had an average of 15.25 hedge funds with bullish positions and the average amount invested in these stocks was $75 million. That figure was $26 million in OFG’s case. OraSure Technologies, Inc. (NASDAQ:OSUR) is the most popular stock in this table. On the other hand QAD Inc. (NASDAQ:QADA) is the least popular one with only 11 bullish hedge fund positions. Compared to these stocks Oriental Financial Group Inc. (NYSE:OFG) is even less popular than QADA. 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.

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