Is Denison Mines Corp (USA) (DNN) A Good Stock To Buy?

Seeing as Denison Mines Corp (USA) (NYSEAMEX:DNN) has faced declining sentiment from hedge fund managers, it’s safe to say that there were a few hedge funds that slashed their full holdings in the third quarter. At the top of the heap, Joel Greenblatt’s Gotham Asset Management dropped the biggest stake of the 700 funds watched by Insider Monkey, valued at close to $0 million in call options., and Ken Griffin’s Citadel Investment Group was right behind this move, as the fund said goodbye to about $0 million worth. These bearish behaviors are intriguing to say the least, as aggregate hedge fund interest stayed the same (this is a bearish signal in our experience).

Let’s now take a look at hedge fund activity in other stocks – not necessarily in the same industry as Denison Mines Corp (USA) (NYSEAMEX:DNN) but similarly valued. We will take a look at Control4 Corp (NASDAQ:CTRL), Mattersight Corporation (NASDAQ:MATR), Alliance One International, Inc. (NYSE:AOI), and Great Ajax Corp (NYSE:AJX). This group of stocks’ market valuations are closest to DNN’s market valuation.

As you can see these stocks had an average of 6 hedge funds with bullish positions and the average amount invested in these stocks was $25 million. That figure was $1 million in DNN’s case. Alliance One International, Inc. (NYSE:AOI) is the most popular stock in this table. On the other hand, Mattersight Corporation (NASDAQ:MATR) is the least popular one. Compared to these stocks Denison Mines Corp (USA) (NYSEAMEX:DNN), with 4 bullish hedge fund positions is even less popular than MATR. To comprehend why the smart money isn’t behind this stock, further research is needed. This doesn’t necessarily mean that this stock is not a good buying opportunity, but it is possible that investors found it overvalued because they haven’t considered the bullish thesis. In any case, more detailed analysis is advisable.