Is Otter Tail Corporation (OTTR) A Good Stock To Buy?

Due to the fact that Otter Tail Corporation (NASDAQ:OTTR) has experienced falling interest from the entirety of the hedge funds we track, we can see that there is a sect of hedge funds that decided to sell off their positions entirely by the end of the third quarter. Intriguingly, Israel Englander’s Millennium Management sold off the biggest stake of the “upper crust” of funds followed by Insider Monkey, totaling about $1.3 million in stock. John Overdeck and David Siegel’s fund, Two Sigma Advisors, also dumped its stock, about $0.2 million worth.

Let’s now review hedge fund activity in other stocks similar to Otter Tail Corporation (NASDAQ:OTTR). We will take a look at CSG Systems International, Inc. (NASDAQ:CSGS), TherapeuticsMD Inc (OTC:TXMD), Quad/Graphics, Inc. (NYSE:QUAD), and Fossil Inc (NASDAQ:FOSL). This group of stocks’ market caps are similar to OTTR’s market cap.

As you can see these stocks had an average of 16.25 hedge funds with bullish positions and the average amount invested in these stocks was $110 million. That figure was $32 million in OTTR’s case. Quad/Graphics, Inc. (NYSE:QUAD) is the most popular stock in this table. On the other hand TherapeuticsMD Inc (OTC:TXMD) is the least popular one with only 13 bullish hedge fund positions. Compared to these stocks Otter Tail Corporation (NASDAQ:OTTR) is even less popular than TXMD. 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