Is Primo Water Corporation (PRMW) Worthy of Your Portfolio?

Now that we’ve mentioned the most bullish investors, let’s also take a look at some funds that got rid of their entire stakes in the stock during the third quarter. At the top of the heap, Ken Griffin’s Citadel Investment Group got rid of the biggest position of all the investors tracked by Insider Monkey, valued at about $0.4 million in stock, and Glenn Russell Dubin’s Highbridge Capital Management was right behind this move, as the fund dropped about $0.1 million worth of shares.

Let’s also examine hedge fund activity in other stocks – not necessarily in the same industry as Primo Water Corporation (NASDAQ:PRMW) but similarly valued. We will take a look at Natural Gas Services Group, Inc. (NYSE:NGS), THL Credit, Inc. (NASDAQ:TCRD), Del Frisco’s Restaurant Group Inc (NASDAQ:DFRG), and Homeowners Choice Inc (NYSE:HCI). This group of stocks’ market caps are closest to PRMW’s market cap.

As you can see these stocks had an average of 11 hedge funds with bullish positions and the average amount invested in these stocks was $30 million, compared to $73 million in PRMW’s case. Del Frisco’s Restaurant Group Inc (NASDAQ:DFRG) is the most popular stock in this table. On the other hand THL Credit, Inc. (NASDAQ:TCRD) is the least popular one with only seven bullish hedge fund positions. Primo Water Corporation (NASDAQ:PRMW) is not the most popular stock in this group but hedge fund interest is still above average. This is a slightly positive signal but we’d rather spend our time researching stocks that hedge funds are piling on. In this regard Del Frisco’s Restaurant Group Inc (NASDAQ:DFRG) might be a better candidate to consider taking a long position in.

Disclosure: none