Should You Avoid PGT, Inc. (PGTI)?

Because PGT, Inc. (NASDAQ:PGTI) has experienced a decline in interest from hedge fund managers, it’s safe to say that there is a sect of hedgies who sold off their entire stakes heading into Q4. It’s worth mentioning that Richard S. Meisenberg’s ACK Asset Management cut the largest position of the 700 funds watched by Insider Monkey, worth about $5.9 million in stock. Mark Coe’s fund, Coe Capital Management, also dropped its stock, about $0.8 million worth. These moves are interesting, as total hedge fund interest dropped by 7 funds heading into Q4.

Let’s go over hedge fund activity in other stocks similar to PGT, Inc. (NASDAQ:PGTI). We will take a look at Synergy Pharmaceuticals Inc (NASDAQ:SGYP), Veritiv Corp (NYSE:VRTV), Unisys Corporation (NYSE:UIS), and Monmouth R.E. Inv. Corp. (NYSE:MNR). All of these stocks’ market caps are similar to PGTI’s market cap.

As you can see these stocks had an average of 15 hedge funds with bullish positions and the average amount invested in these stocks was $94 million, compared to $83 million in PGTI’s case. Synergy Pharmaceuticals Inc (NASDAQ:SGYP) is the most popular stock in this table. On the other hand Monmouth R.E. Inv. Corp. (NYSE:MNR) is the least popular one with only 8 bullish hedge fund positions. PGT, Inc. (NASDAQ:PGTI) is not the least popular stock in this group, but hedge fund interest is still below average. This is a slightly negative signal and we’d rather spend our time researching stocks that hedge funds are piling on. In this regard SGYP might be a better candidate to consider a long position.