Is FormFactor, Inc. (FORM) A Good Stock To Buy?

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Consequently, key money managers were leading the bulls’ herd. Dialectic Capital Management, led by John Fichthorn, assembled the most valuable position in FormFactor, Inc. (NASDAQ:FORM). Dialectic Capital Management had $1 million invested in the company at the end of the quarter. Drew Cupps’s Cupps Capital Management also initiated a $0.7 million position during the quarter. The following funds were also among the new FORM investors: Josh Goldberg’s G2 Investment Partners Management, Frank Slattery’s Symmetry Peak Management, and Ken Griffin’s Citadel Investment Group.

Let’s now review hedge fund activity in other stocks similar to FormFactor, Inc. (NASDAQ:FORM). These stocks are Tailored Brands Inc (NYSE:TLRD), Raptor Pharmaceutical Corp. (NASDAQ:RPTP), Bankrate Inc (NYSE:RATE), and ANI Pharmaceuticals Inc (NASDAQ:ANIP). This group of stocks’ market values are similar to FORM’s market value.

Ticker No of HFs with positions Total Value of HF Positions (x1000) Change in HF Position
TLRD 25 252791 6
RPTP 17 125492 2
RATE 17 58556 -1
ANIP 16 76155 2

As you can see these stocks had an average of 19 funds with bullish positions and the average amount invested in these stocks was $128 million. That figure was $72 million in FORM’s case. Tailored Brands Inc (NYSE:TLRD) is the most popular stock in this table. On the other hand ANI Pharmaceuticals Inc (NASDAQ:ANIP) is the least popular one with only 16 bullish hedge fund positions. Compared to these stocks FormFactor, Inc. (NASDAQ:FORM) has the same number of funds with long positions as ANIP. 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. This isn’t necessarily bad news. Although it is possible that hedge funds may think the stock is overpriced and view the stock as a short candidate, they may not be very familiar with the bullish thesis. In either case more research is warranted.

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Disclosure: none




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