Is Balchem Corporation (BCPC) A Good Stock To Buy?

With a general bullishness amongst the heavyweights, some big names were leading the bulls’ herd. Daruma Asset Management, led by Mariko Gordon, established the most valuable position in Balchem Corporation (NASDAQ:BCPC). Daruma Asset Management had $2.2 million invested in the company at the end of the quarter. Mike Vranos’s Ellington also initiated a $0.7 million position during the quarter. The only other fund with a new position in the stock is Ken Griffin’s Citadel Investment Group.

Let’s now take a look at hedge fund activity in other stocks similar to Balchem Corporation (NASDAQ:BCPC). We will take a look at MasTec, Inc. (NYSE:MTZ), Silicon Laboratories (NASDAQ:SLAB), Lexington Realty Trust (NYSE:LXP), and Mack Cali Realty Corp (NYSE:CLI). This group of stocks’ market caps resemble BCPC’s market cap.

As you can see these stocks had an average of 16 hedge funds with bullish positions and the average amount invested in these stocks was $144 million. That figure was $76 million in BCPC’s case. MasTec, Inc. (NYSE:MTZ) is the most popular stock in this table. On the other hand Mack Cali Realty Corp (NYSE:CLI) is the least popular one with only 10 bullish hedge fund positions. Compared to these stocks Balchem Corporation (NASDAQ:BCPC) is even less popular than CLI. 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.

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