Is Atkore International Group Inc (ATKR) a Good Stock to Buy?

Because Atkore International Group Inc (NYSE:ATKR) has sustained falling interest from the aggregate hedge fund industry, we can see that there were a few funds who were dropping their full holdings in the third quarter. Interestingly, Richard S. Meisenberg’s ACK Asset Management dropped the biggest stake of the “upper crust” of funds followed by Insider Monkey, comprising close to $4.9 million in stock, and David Costen Haley’s HBK Investments was right behind this move, as the fund dumped about $4 million worth of shares.

Let’s go over hedge fund activity in other stocks similar to Atkore International Group Inc (NYSE:ATKR). These stocks are Agree Realty Corporation (NYSE:ADC), Gibraltar Industries Inc (NASDAQ:ROCK), The Buckle, Inc. (NYSE:BKE), and BNC Bancorp (NASDAQ:BNCN). This group of stocks’ market valuations are closest to ATKR’s market valuation.

As you can see these stocks had an average of 16.25 hedge funds with bullish positions and the average amount invested in these stocks was $89 million. That figure was $100 million in ATKR’s case. Gibraltar Industries Inc (NASDAQ:ROCK) is the most popular stock in this table. On the other hand Agree Realty Corporation (NYSE:ADC) is the least popular one with only 13 bullish hedge fund positions. Compared to these stocks Atkore International Group Inc (NYSE:ATKR) is even less popular than ADC. 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.