Should You Buy MDU Resources Group Inc (MDU)?

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We already know that not all hedge funds are bullish on the stock and some hedge funds actually dumped their positions entirely. Intriguingly, Ken Griffin’s Citadel Investment Group dumped the largest position of all the investors studied by Insider Monkey, worth close to $0.7 million in stock. Matthew Tewksbury’s fund, Stevens Capital Management, also dropped its stock, about $0.3 million worth.

Let’s also examine hedge fund activity in other stocks similar to MDU Resources Group Inc (NYSE:MDU). We will take a look at Genpact Limited (NYSE:G), Polaris Industries Inc. (NYSE:PII), Dun & Bradstreet Corp (NYSE:DNB), and athenahealth, Inc (NASDAQ:ATHN). All of these stocks’ market caps match MDU’s market cap.

Ticker No of HFs with positions Total Value of HF Positions (x1000) Change in HF Position
G 22 428493 3
PII 12 75063 -5
DNB 21 236956 4
ATHN 15 156671 -5

As you can see these stocks had an average of 17 hedge funds with bullish positions and the average amount invested in these stocks was $224 million. That figure was $38 million in MDU’s case. Genpact Limited (NYSE:G) is the most popular stock in this table. On the other hand Polaris Industries Inc. (NYSE:PII) is the least popular one with only 12 bullish hedge fund positions. Compared to these stocks MDU Resources Group Inc (NYSE:MDU) is even less popular than PII. 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


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