Is Preferred Apartment Communities Inc. (APTS) A Good Stock to Buy?

As aggregate interest increased, some big names have been driving this bullishness. Forward Management initiated the largest position in Preferred Apartment Communities Inc. (NYSE:APTS). Two Sigma Advisors also initiated a $0.5 million position during the quarter. The other funds with brand new APTS positions are Citadel Investment Group, Cliff Asness’ AQR Capital Management, and Matthew Tewksbury’s Stevens Capital Management.

Let’s now take a look at hedge fund activity in other stocks similar to Preferred Apartment Communities Inc. (NYSE:APTS). These stocks are Sangamo Biosciences, Inc. (NASDAQ:SGMO), Blue Bird Copr (NASDAQ:BLBD), Central European Media Enterprises Ltd. (NASDAQ:CETV), and MeetMe Inc (NYSEAMEX:MEET). This group of stocks’ market valuations are closest to APTS’s market valuation.

As you can see these stocks had an average of 13 hedge funds with bullish positions and the average amount invested in these stocks was $64 million. That figure was $5 million in APTS’s case. Sangamo Biosciences, Inc. (NASDAQ:SGMO) is the most popular stock in this table. On the other hand Central European Media Enterprises Ltd. (NASDAQ:CETV) is the least popular one with only 7 bullish hedge fund positions. Compared to these stocks Preferred Apartment Communities Inc. (NYSE:APTS) is only as popular as CETV. 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.

Disclosure: None