Is Proto Labs Inc (PRLB) A Good Stock To Buy?

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 Constantinos J. Christofilis’ Archon Capital Management dropped the biggest position of all the investors tracked by Insider Monkey, totaling about $6.1 million in stock, and Drew Cupps’ Cupps Capital Management was right behind this move, as the fund dropped about $1 million worth of shares.

Let’s now take a look at hedge fund activity in other stocks – not necessarily in the same industry as Proto Labs Inc (NYSE:PRLB) but similarly valued. These stocks are Ollie’s Bargain Outlet Holdings Inc (NASDAQ:OLLI), Potlatch Corporation (NASDAQ:PCH), First Midwest Bancorp Inc (NASDAQ:FMBI), and Heartland Express, Inc. (NASDAQ:HTLD). This group of stocks’ market valuations match PRLB’s market valuation.

As you can see these stocks had an average of 15 hedge funds with bullish positions and the average amount invested in these stocks was $104 million. That figure was $97 million in PRLB’s case. Ollie’s Bargain Outlet Holdings Inc (NASDAQ:OLLI) is the most popular stock in this table. On the other hand Potlatch Corporation (NASDAQ:PCH) is the least popular one with only 12 bullish hedge fund positions. Compared to these stocks Proto Labs Inc (NYSE:PRLB) is even less popular than PCH. 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