Is Ducommun Incorporated (DCO) A Good Stock To Buy?

Since Ducommun Incorporated (NYSE:DCO) has faced bearish sentiment from the smart money, we can see that there were a few hedge funds that elected to cut their entire stakes last quarter. At the top of the heap, Cliff Asness’ AQR Capital Management dumped the largest stake of all the hedgies monitored by Insider Monkey, comprising close to $0.6 million in stock, and Mark Coe’s Coe Capital Management was right behind this move, as the fund sold off about $0.4 million worth of shares.

Let’s go over hedge fund activity in other stocks similar to Ducommun Incorporated (NYSE:DCO). These stocks are OvaScience Inc (NASDAQ:OVAS), Bluerock Residential Growth REIT Inc (NYSEMKT:BRG), Bassett Furniture Industries Inc. (NASDAQ:BSET), and Merus NV (NASDAQ:MRUS). All of these stocks’ market caps are similar to DCO’s market cap.

As you can see these stocks had an average of nine funds with bullish positions and the average amount invested in these stocks was $41 million. That figure was $22 million in DCO’s case. OvaScience Inc (NASDAQ:OVAS) is the most popular stock in this table. On the other hand Merus NV (NASDAQ:MRUS) is the least popular one with only five bullish hedge fund positions. Ducommun Incorporated (NYSE:DCO) is not the least popular stock in this group but hedge fund interest is still below average. This is a slightly negative signal and we’d rather spend our time researching stocks that hedge funds are piling on. In this regard OVAS might be a better candidate to consider taking a long position in.

Disclosure: none