Nordson Corporation (NDSN) is Red Hot After Beating Estimates

Several top money managers jumped into Nordson Corporation (NASDAQ:NDSN) headfirst in the first quarter. PEAK6 Capital Management assembled the largest call position in Nordson Corporation (NASDAQ:NDSN). PEAK6 Capital Management had $1.2 million invested in the company at the end of the quarter. John Overdeck and David Siegel’s Two Sigma Advisors also made a $0.8 million investment in the stock during the quarter. The following funds were also among the new NDSN investors: Peter Muller’s PDT Partners, George Hall’s Clinton Group, and Andrew Feldstein and Stephen Siderow’s Blue Mountain Capital.

Let’s now review hedge fund activity in other stocks similar to Nordson Corporation (NASDAQ:NDSN). These stocks are Dunkin Brands Group Inc (NASDAQ:DNKN), Teck Resources Ltd (USA) (NYSE:TCK), Arista Networks Inc (NYSE:ANET), and Microsemi Corporation (NASDAQ:MSCC). This group of stocks’ market values are similar to NDSN’s market value.

As you can see these stocks had an average of 19 hedge funds with bullish positions and the average amount invested in these stocks was $220 million. That figure was $53 million in NDSN’s case. Arista Networks Inc (NYSE:ANET) is the most popular stock in this table. On the other hand Microsemi Corporation (NASDAQ:MSCC) is the least popular one with only 15 bullish hedge fund positions. Compared to these stocks Nordson Corporation (NASDAQ:NDSN) is even less popular than MSCC. 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