Should You Avoid Materion Corp (MTRN)?

Now that we’ve mentioned the most bullish investors, let’s also take a look at some funds that sold off their entire stakes in the stock during the third quarter. Interestingly, Paul Marshall and Ian Wace’s Marshall Wace LLP sold off the biggest stake of all the investors followed by Insider Monkey, worth about $1.4 million in stock. Jim Simons’s fund, Renaissance Technologies, also said goodbye to its stock, about $0.6 million worth of MTRN shares.

Let’s also examine hedge fund activity in other stocks similar to Materion Corp (NYSE:MTRN). These stocks are Tredegar Corporation (NYSE:TG), Ciner Resources LP (NYSE:CINR), Seacoast Banking Corporation of Florida (NASDAQ:SBCF), and Ardelyx Inc (NASDAQ:ARDX). All of these stocks’ market caps resemble MTRN’s market cap.

As you can see these stocks had an average of 10 hedge funds with bullish positions and the average amount invested in these stocks was $82 million. That figure was $40 million in MTRN’s case. Seacoast Banking Corporation of Florida (NASDAQ:SBCF) is the most popular stock in this table. On the other hand Ciner Resources LP (NYSE:CINR) is the least popular one with only 4 bullish hedge fund positions. Materion Corp (NYSE:MTRN) 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 SBCF might be a better candidate to consider taking a long position in.

Disclosure: None