Is Empire District Electric Co (EDE) A Good Stock To Buy?

Now that we’ve mentioned the most bullish investors, let’s also take a look at some funds that sold off their entire stakes in the stock during the third quarter. Intriguingly, John Orrico’s Water Island Capital sold off the biggest position of all the investors tracked by Insider Monkey, worth close to $9.8 million in stock, and John Overdeck and David Siegel’s Two Sigma Advisors was right behind this move, as the fund dumped about $0.9 million worth of shares.

Let’s also examine hedge fund activity in other stocks similar to Empire District Electric Co (NYSE:EDE). We will take a look at Banner Corporation (NASDAQ:BANR), MGM Growth Properties LLC(NYSE:MGP), Smith & Wesson Holding Corporation (NASDAQ:SWHC), and TASER International, Inc. (NASDAQ:TASR). This group of stocks’ market values are similar to EDE’s market value.

As you can see these stocks had an average of 20 hedge funds with bullish positions and the average amount invested in these stocks was $192 million. That figure was $116 million in EDE’s case. MGM Growth Properties LLC(NYSE:MGP) is the most popular stock in this table. On the other hand TASER International, Inc. (NASDAQ:TASR) is the least popular one with only 12 bullish hedge fund positions. Compared to these stocks  Empire District Electric Co (NYSE:EDE) is even less popular than TASR. 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.

Disclosure: None