Is UDR, Inc. (UDR) A Good Stock To Buy?

As aggregate interest increased, key hedge funds have been driving this bullishness. Highbridge Capital Management, led by Glenn Russell Dubin, assembled the largest position in UDR, Inc. (NYSE:UDR). Highbridge Capital Management had $2 million invested in the company at the end of the quarter. Matthew Hulsizer’s PEAK6 Capital Management also initiated a $0.9 million position during the quarter. The only other fund with a new position in the stock is D. E. Shaw’s D E Shaw.

Let’s also examine hedge fund activity in other stocks similar to UDR, Inc. (NYSE:UDR). We will take a look at Textron Inc. (NYSE:TXT), Akamai Technologies, Inc. (NASDAQ:AKAM), WestRock Co (NYSE:WRK), and Mettler-Toledo International Inc. (NYSE:MTD). This group of stocks’ market caps are similar to UDR’s market cap.

As you can see these stocks had an average of 26 hedge funds with bullish positions and the average amount invested in these stocks was $583 million. That figure was $151 million in UDR’s case. Akamai Technologies, Inc. (NASDAQ:AKAM) is the most popular stock in this table. On the other hand Textron Inc. (NYSE:TXT) is the least popular one with only 17 bullish hedge fund positions. Compared to these stocks UDR, Inc. (NYSE:UDR) is even less popular than TXT. 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