Is Douglas Dynamics Inc (PLOW) A Good Stock To Buy?

Judging by the fact that Douglas Dynamics Inc (NYSE:PLOW) has witnessed neutral interest from hedge fund managers, it’s easy to see that there exists a select few hedgies who were dropping their entire stakes by the end of the third quarter. At the top of the heap, Peter Algert and Kevin Coldiron’s Algert Coldiron Investors dumped the largest stake of all the hedgies studied by Insider Monkey, comprising about $0.7 million in stock, and Neil Chriss’s Hutchin Hill Capital was right behind this move, as the fund sold off about $0.6 million worth of shares.

Let’s now review hedge fund activity in other stocks – not necessarily in the same industry as Douglas Dynamics Inc (NYSE:PLOW) but similarly valued. We will take a look at Corcept Therapeutics Incorporated (NASDAQ:CORT), Quidel Corporation (NASDAQ:QDEL), INTL Fcstone Inc (NASDAQ:INTL), and Oritani Financial Corp. (NASDAQ:ORIT). This group of stocks’ market values match PLOW’s market value.

As you can see these stocks had an average of 10.5 hedge funds with bullish positions and the average amount invested in these stocks was $48 million. That figure was $19 million in PLOW’s case. Oritani Financial Corp. (NASDAQ:ORIT) is the most popular stock in this table. On the other hand Quidel Corporation (NASDAQ:QDEL) is the least popular one with only 7 bullish hedge fund positions. Douglas Dynamics Inc (NYSE:PLOW) is not the most popular stock in this group but hedge fund interest is still above average. This is a slightly positive signal but we’d rather spend our time researching stocks that hedge funds are piling on. In this regard ORIT might be a better candidate to consider taking a long position in.