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Is AAON, Inc. (AAON) A Good Stock To Buy?

Since AAON, Inc. (NASDAQ:AAON) has gone through falling interest from the smart money, logic holds that there is a sect of hedge funds who sold off their entire stakes heading into Q4. Interestingly, Peter Algert and Kevin Coldiron’s Algert Coldiron Investors sold off the biggest investment of all the hedgies tracked by Insider Monkey, worth close to $0.6 million in stock, and Joel Greenblatt’s Gotham Asset Management was right behind this move, as the fund dropped about $0.3 million worth of shares.

Let’s check out hedge fund activity in other stocks similar to AAON, Inc. (NASDAQ:AAON). These stocks are II-VI, Inc. (NASDAQ:IIVI), Belmond Ltd (NYSE:BEL), WNS (Holdings) Limited (ADR) (NYSE:WNS), and TriNet Group Inc (NYSE:TNET). This group of stocks’ market caps are similar to AAON’s market cap.

Ticker No of HFs with positions Total Value of HF Positions (x1000) Change in HF Position
IIVI 20 91987 2
BEL 12 103184 -3
WNS 11 64725 0
TNET 14 124160 -7

As you can see these stocks had an average of 14.25 hedge funds with bullish positions and the average amount invested in these stocks was $96 million. That figure was $31 million in AAON’s case. II-VI, Inc. (NASDAQ:IIVI) is the most popular stock in this table. On the other hand WNS (Holdings) Limited (ADR) (NYSE:WNS) is the least popular one with only 11 bullish hedge fund positions. Compared to these stocks AAON, Inc. (NASDAQ:AAON) is even less popular than WNS. 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.

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