How Does DMC Global Inc (BOOM) Stack Up Against Its Peers?

Earlier we told you that the aggregate hedge fund interest in the stock was unchanged and we view this as a negative development. Even though there weren’t any hedge funds dumping their holdings during the third quarter, there weren’t any hedge funds initiating brand new positions either. This indicates that hedge funds, at the very best, perceive this stock as dead money and they haven’t identified any viable catalysts that can attract investor attention.

Let’s go over hedge fund activity in other stocks – not necessarily in the same industry as DMC Global Inc (NASDAQ:BOOM) but similarly valued. These stocks are NCI Inc (NASDAQ:NCIT), Vuzix Corporation (NASDAQ:VUZI), Provident Financial Holdings, Inc. (NASDAQ:PROV), and Immune Desing Corp (NASDAQ:IMDZ). This group of stocks’ market caps are closest to BOOM’s market cap.

As you can see these stocks had an average of 5 hedge funds with bullish positions and the average amount invested in these stocks was $8 million. That figure was $17 million in BOOM’s case. Immune Desing Corp (NASDAQ:IMDZ) is the most popular stock in this table. On the other hand Provident Financial Holdings, Inc. (NASDAQ:PROV) is the least popular one with only 2 bullish hedge fund positions. DMC Global Inc (NASDAQ:BOOM) 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 IMDZ might be a better candidate to consider taking a long position in.

Disclosure: None