Is Gold Resource Corporation (GORO) A Good Stock to Buy?

Because Gold Resource Corporation (NYSEMKT:GORO) has witnessed bearish sentiment from the entirety of the hedge funds we track, logic holds that there was a specific group of hedge funds that elected to cut their positions entirely by the end of the third quarter. It’s worth mentioning that Ken Griffin’s Citadel Investment Group dumped the biggest stake of all the hedgies watched by Insider Monkey, valued at an estimated $0.7 million in stock. David E. Shaw’s fund, D E Shaw, also said goodbye to its stock, about $0.5 million worth.

Let’s now review hedge fund activity in other stocks similar to Gold Resource Corporation (NYSEMKT:GORO). We will take a look at Neuroderm Ltd (NASDAQ:NDRM), Resolute Energy Corp (NYSE:REN), CU Bancorp (NASDAQ:CUNB), and Green Bancorp Inc (NASDAQ:GNBC). This group of stocks’ market caps are closest to GORO’s market cap.

Ticker No of HFs with positions Total Value of HF Positions (x1000) Change in HF Position
NDRM 16 120648 2
REN 12 121898 6
CUNB 6 29827 0
GNBC 6 4263 1

As you can see these stocks had an average of 10 hedge funds with bullish positions and the average amount invested in these stocks was $69 million. That figure was $17 million in GORO’s case. Neuroderm Ltd (NASDAQ:NDRM) is the most popular stock in this table. On the other hand CU Bancorp (NASDAQ:CUNB) is the least popular one with only 6 bullish hedge fund positions. Compared to these stocks Gold Resource Corporation (NYSEMKT:GORO) is even less popular than CUNB. 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