Is Aegion Corp (AEGN) A Good Stock To Buy?

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Because Aegion Corp (NASDAQ:AEGN) has witnessed bearish sentiment from hedge fund managers, it’s safe to say that there exists a select few fund managers that elected to cut their positions entirely last quarter. It’s worth mentioning that Joel Greenblatt’s Gotham Asset Management said goodbye to the biggest stake of all the hedgies monitored by Insider Monkey, worth close to $4 million in stock, and Peter Rathjens, Bruce Clarke and John Campbell’s Arrowstreet Capital was right behind this move, as the fund cut about $1.6 million worth of shares.

Let’s now review hedge fund activity in other stocks similar to Aegion Corp (NASDAQ:AEGN). These stocks are Qiwi PLC (NASDAQ:QIWI), Teekay Corporation (NYSE:TK), EarthLink, Inc. (NASDAQ:ELNK), and Western Asst High Incm Opprtnty Fnd Inc. (NYSE:HIO). This group of stocks’ market values match AEGN’s market value.

Ticker No of HFs with positions Total Value of HF Positions (x1000) Change in HF Position
QIWI 9 74776 1
TK 12 69990 -3
ELNK 20 97904 -2
HIO 4 7992 -1

As you can see these stocks had an average of 11.25 hedge funds with bullish positions and the average amount invested in these stocks was $63 million. That figure was $39 million in AEGN’s case. EarthLink, Inc. (NASDAQ:ELNK) is the most popular stock in this table. On the other hand Western Asst High Incm Opprtnty Fnd Inc. (NYSE:HIO) is the least popular one with only 4 bullish hedge fund positions. Aegion Corp (NASDAQ:AEGN) is not the least popular stock in this group but hedge fund interest is still below average. This is a slightly negative signal and we’d rather spend our time researching stocks that hedge funds are piling on. In this regard ELNK might be a better candidate to consider taking a long position in.

Disclosure: None


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