Is Synergy Resources Corp (SYRG) A Good Stock To Buy?

Since Synergy Resources Corp (NYSEAMEX:SYRG) has experienced falling interest from hedge fund managers, it’s easy to see that there were a few money managers that decided to sell off their positions entirely last quarter. Interestingly, Drew Cupps’s Cupps Capital Management cut the biggest stake of the 700 funds watched by Insider Monkey, totaling close to $4.2 million in stock. Douglas T. Granat’s fund, Trigran Investments, also said goodbye to its stock, about $2.2 million worth. These moves are intriguing to say the least, as total hedge fund interest dropped by 4 funds last quarter.

Let’s now take a look at hedge fund activity in other stocks similar to Synergy Resources Corp (NYSEAMEX:SYRG). We will take a look at Quaker Chemical Corp (NYSE:KWR), Petrobras Argentina SA ADR (NYSE:PZE), Bottomline Technologies (NASDAQ:EPAY), and Aerojet Rocketdyne Holdings Inc (NYSE:AJRD). This group of stocks’ market valuations are similar to SYRG’s market valuation.

As you can see these stocks had an average of 13.75 hedge funds with bullish positions and the average amount invested in these stocks was $118 million, compared to $54 million in SYRG’s case. Aerojet Rocketdyne Holdings Inc (NYSE:AJRD) is the most popular stock in this table. On the other hand Bottomline Technologies (NASDAQ:EPAY) is the least popular one with only seven funds holding shares. Even though Synergy Resources Corp (NYSEAMEX:SYRG) is not the least popular stock in this group, it has a below-average hedge fund interest. This is a slightly negative signal and we’d rather spend our time researching stocks that hedge funds are piling on. In this regard AJRD might be a better candidate to consider a long position.