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Is AgroFresh Solutions Inc (AGFS) A Good Stock To Buy?

Now that we’ve mentioned the most bullish investors, let’s also take a look at some funds that cut their entire stakes in the stock during the third quarter. It’s worth mentioning that Jeffrey Jacobowitz’s Simcoe Capital Management cut the largest investment of the 700 funds followed by Insider Monkey, comprising close to $7.2 million in stock. Adam Wright and Gary Kohler’s fund, Blue Clay Capital, also said goodbye to its stock, about $0.2 million worth.

Let’s also examine hedge fund activity in other stocks – not necessarily in the same industry as AgroFresh Solutions Inc (NASDAQ:AGFS) but similarly valued. We will take a look at Malibu Boats Inc (NASDAQ:MBUU), DSP Group, Inc. (NASDAQ:DSPG), Pioneer Energy Services Corp (NYSE:PES), and Ignyta Inc (NASDAQ:RXDX). This group of stocks’ market values are similar to AGFS’s market value.

Ticker No of HFs with positions Total Value of HF Positions (x1000) Change in HF Position
MBUU 14 15825 5
DSPG 12 58798 4
PES 10 4083 -1
RXDX 16 94094 0

As you can see these stocks had an average of 13 hedge funds with bullish positions and the average amount invested in these stocks was $43 million. That figure was $12 million in AGFS’s case. Ignyta Inc (NASDAQ:RXDX) is the most popular stock in this table. On the other hand Pioneer Energy Services Corp (NYSE:PES) is the least popular one with only 10 bullish hedge fund positions. Compared to these stocks AgroFresh Solutions Inc (NASDAQ:AGFS) is even less popular than PES. 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.

Disclosure: None