Ennis, Inc. (EBF): Are Hedge Funds Right About This Stock?

We already know that not all hedge funds are bullish on the stock and some hedge funds actually dumped their positions entirely. Intriguingly, Robert B. Gillam’s McKinley Capital Management dumped the largest investment of all the hedgies tracked by Insider Monkey, comprising close to $5.1 million in stock, and Peter Rathjens, Bruce Clarke and John Campbell’s Arrowstreet Capital was right behind this move, as the fund dumped about $4.2 million worth of shares.

Let’s now review hedge fund activity in other stocks – not necessarily in the same industry as Ennis, Inc. (NYSE:EBF) but similarly valued. These stocks are AG Mortgage Investment Trust Inc (NYSE:MITT), Omeros Corporation (NASDAQ:OMER), Heritage Insurance Holdings Inc (NYSE:HRTG), and Gladstone Commercial Corporation (NASDAQ:GOOD). All of these stocks’ market caps are closest to EBF’s market cap.

As you can see these stocks had an average of 8 hedge funds with bullish positions and the average amount invested in these stocks was $27 million. That figure was $35 million in EBF’s case. Heritage Insurance Holdings Inc (NYSE:HRTG) is the most popular stock in this table. On the other hand Omeros Corporation (NASDAQ:OMER) is the least popular one with only 3 bullish hedge fund positions. Ennis, Inc. (NYSE:EBF) 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 HRTG might be a better candidate to consider taking a long position in.

Disclosure: None