Here is What Hedge Funds Think About Sterling Construction Company, Inc. (STRL)

As one would reasonably expect, key money managers were leading the bulls’ herd. Skylands Capital established the largest position in Sterling Construction Company, Inc. (NASDAQ:STRL). Skylands Capital had $0.3 million invested in the company at the end of the quarter. Millennium Management also initiated a $0.1 million position during the quarter.

Let’s now take a look at hedge fund activity in other stocks similar to Sterling Construction Company, Inc. (NASDAQ:STRL). These stocks are Willdan Group, Inc. (NASDAQ:WLDN), Lifevantage Corporation (NASDAQ:LFVN), BSQUARE Corporation (NASDAQ:BSQR), and Synalloy Corporation (NASDAQ:SYNL). All of these stocks’ market caps match Sterling Construction Company, Inc. (NASDAQ:STRL)’s market cap.

As you can see, these stocks had an average of 6 hedge funds with bullish positions and the average amount invested in these stocks was $8 million. That figure was $2 million in Sterling Construction Company, Inc. (NASDAQ:STRL)’s case. Willdan Group, Inc. (NASDAQ:WLDN) is the most popular stock in this table. On the other hand, Lifevantage Corporation (NASDAQ:LFVN) is the least popular one with only 4 bullish hedge fund positions. Compared to these stocks, Sterling Construction Company, Inc. (NASDAQ:STRL) is even less popular than Lifevantage Corporation (NASDAQ:LFVN). 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.