Do Hedge Funds Love Civitas Solutions Inc (CIVI)?

As industrywide interest jumped, specific money managers have been driving this bullishness. Stadium Capital Management, led by Alexander Medina Seaver, assembled the biggest position in Civitas Solutions Inc (NYSE:CIVI). Stadium Capital Management had $5.4 million invested in the company at the end of the quarter. Millennium Management also made a $0.5 million investment in the stock during the quarter.

Let’s go over hedge fund activity in other stocks similar to Civitas Solutions Inc (NYSE:CIVI). These stocks are MGP Ingredients Inc (NASDAQ:MGPI), Echo Global Logistics, Inc. (NASDAQ:ECHO), CommerceHub Inc (NASDAQ:CHUBA), and Heron Therapeutics Inc (NASDAQ:HRTX). This group of stocks’ market caps are closest to CIVI’s market cap.

As you can see these stocks had an average of 12 funds with bullish positions and the average amount invested in these stocks was $128 million. That figure was $10 million in CIVI’s case. CommerceHub Inc (NASDAQ:CHUBA) is the most popular stock in this table. On the other hand MGP Ingredients Inc (NASDAQ:MGPI) is the least popular one with only eight funds holding shares. Compared to these stocks Civitas Solutions Inc (NYSE:CIVI) registered the same number of bullish investors as MGP Ingredients. Considering that hedge funds aren’t fond of this stock in relation to the majority of 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