Is Erie Indemnity Company (ERIE) A Good Stock To Buy?

As one would reasonably expect, key hedge funds were breaking ground themselves. PDT Partners, managed by Peter Muller, initiated the largest position in Erie Indemnity Company (NASDAQ:ERIE). PDT Partners had $0.3 million invested in the company at the end of the quarter. Ray Dalio’s Bridgewater Associates also made a $0.2 million investment in the stock during the quarter.

Let’s check out hedge fund activity in other stocks – not necessarily in the same industry as Erie Indemnity Company (NASDAQ:ERIE) but similarly valued. These stocks are Sociedad Quimica y Minera (ADR) (NYSE:SQM), Bemis Company, Inc. (NYSE:BMS), Donaldson Company, Inc. (NYSE:DCI), and Arris Group, Inc. (NASDAQ:ARRS). This group of stocks’ market values are closest to ERIE’s market value.

As you can see these stocks had an average of 22.75 hedge funds with bullish positions and the average amount invested in these stocks was $388 million. That figure was $52 million in ERIE’s case. Arris Group, Inc. (NASDAQ:ARRS) is the most popular stock in this table. On the other hand Sociedad Quimica y Minera (ADR) (NYSE:SQM) is the least popular one with only 9 bullish hedge fund positions. Erie Indemnity Company (NASDAQ:ERIE) 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 ARRS might be a better candidate to consider a long position.