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Is Albany Molecular Research, Inc. (AMRI) A Good Stock To Buy?

As one would reasonably expect, key money managers have been driving this bullishness. Cove Street Capital, led by Jeffrey Bronchick, initiated the largest position in Albany Molecular Research, Inc. (NASDAQ:AMRI). Cove Street Capital had $2 million invested in the company at the end of the quarter. Joseph Edelman’s Perceptive Advisors also made a $0.2 million investment in the stock during the quarter. The only other fund with a brand new AMRI position is Gavin Saitowitz and Cisco J. del Valle’s Springbok Capital.

Let’s go over hedge fund activity in other stocks – not necessarily in the same industry as Albany Molecular Research, Inc. (NASDAQ:AMRI) but similarly valued. These stocks are Greenhill & Co., Inc. (NYSE:GHL), Rudolph Technologies Inc (NYSE:RTEC), National Storage Affiliates Trust (NYSE:NSA), and Otonomy Inc (NASDAQ:OTIC). This group of stocks’ market caps are closest to AMRI’s market cap.

Ticker No of HFs with positions Total Value of HF Positions (x1000) Change in HF Position
GHL 16 106468 6
RTEC 20 86704 2
NSA 12 68930 -9
OTIC 11 84280 -1

As you can see these stocks had an average of 15 hedge funds with bullish positions and the average amount invested in these stocks was $87 million. That figure was $93 million in AMRI’s case. Rudolph Technologies Inc (NYSE:RTEC) is the most popular stock in this table. On the other hand Otonomy Inc (NASDAQ:OTIC) is the least popular one with only 11 bullish hedge fund positions. Albany Molecular Research, Inc. (NASDAQ:AMRI) 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 RTEC might be a better candidate to consider taking a long position in.

Disclosure: None

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