Is Allied Motion Technologies, Inc. (AMOT) Worthy of Your Portfolio?

Now, key hedge funds have jumped into Allied Motion Technologies, Inc. (NASDAQ:AMOT) headfirst. Algert Coldiron Investors initiated the most valuable position in Allied Motion Technologies, Inc. (NASDAQ:AMOT) which had $0.8 million invested in the company at the end of the quarter. Centaur Capital Partners also made a $0.2 million investment in the stock during the quarter.

Let’s go over hedge fund activity in other stocks similar to Allied Motion Technologies, Inc. (NASDAQ:AMOT). These stocks are Applied Genetic Technologies Corp (NASDAQ:AGTC), ARC Document Solutions Inc (NYSE:ARC), Travelzoo Inc. (NASDAQ:TZOO), and Allot Communications Ltd. (NASDAQ:ALLT). This group of stocks’ market valuations match AMOT’s market valuation.

Ticker No of HFs with positions Total Value of HF Positions (x1000) Change in HF Position
AGTC 12 14930 0
ARC 10 30585 -1
TZOO 9 18512 3
ALLT 7 23432 -1

As you can see these stocks had an average of nine funds with bullish positions and the average amount invested in these stocks was $22 million. That figure was just $4 million in AMOT’s case. Applied Genetic Technologies Corp (NASDAQ:AGTC) is the most popular stock in this table. On the other hand Allot Communications Ltd. (NASDAQ:ALLT) is the least popular one with only seven bullish hedge fund positions. Compared to these stocks Allied Motion Technologies, Inc. (NASDAQ:AMOT) is even less popular than ALLT. 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