Primo Water Corporation (PRMW): Are Hedge Funds Right About This Stock?

As one would reasonably expect, specific money managers were breaking ground themselves. Blue Clay Capital, initiated the biggest position in Primo Water Corporation (NASDAQ:PRMW), which was worth $0.3 million at the end of the quarter. Ken Grossman and Glen Schneider’s SG Capital Management also initiated a $0.3 million position. The following funds were also among the new PRMW investors: Josh Goldberg’s G2 Investment Partners Management, Israel Englander’s Millennium Management, and Dmitry Balyasny’s Balyasny Asset Management.

Let’s now review hedge fund activity in other stocks similar to Primo Water Corporation (NASDAQ:PRMW). These stocks are Inotek Pharmaceuticals Corp (NASDAQ:ITEK), Lawson Products, Inc. (NASDAQ:LAWS),  and Nabriva Therapeutics AG-ADR (NASDAQ:NBRV). This group of stocks’ market valuations are closest to PRMW’s market valuation.

As you can see these stocks had an average of 9 hedge funds with bullish positions and the average amount invested in these stocks was $23 million, which is considerably lower than the $43 million in PRMW’s case. Inotek Pharmaceuticals Corp (NASDAQ:ITEK) is the most popular stock in this table. On the other hand Lawson Products, Inc. (NASDAQ:LAWS) is the least popular one with only 6 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 ITEK might be a better candidate to consider a long position.