Is Harmony Gold Mining Co. (ADR) (HMY) A Good Stock To Buy?

Due to the fact that Harmony Gold Mining Co. (ADR) (NYSE:HMY) has witnessed declining sentiment from the entirety of the hedge funds we track, we can see that there is a sect of funds that decided to sell off their positions entirely in the third quarter. Intriguingly, Peter Rathjens, Bruce Clarke and John Campbell’s Arrowstreet Capital cut the largest position of all the hedgies watched by Insider Monkey, comprising about $8.3 million in stock, and Paul Tudor Jones’ Tudor Investment Corp was right behind this move, as the fund cut about $0.1 million worth of shares.

Let’s also examine hedge fund activity in other stocks – not necessarily in the same industry as Harmony Gold Mining Co. (ADR) (NYSE:HMY) but similarly valued. These stocks are AAON, Inc. (NASDAQ:AAON), II-VI, Inc. (NASDAQ:IIVI), Belmond Ltd (NYSE:BEL), and WNS (Holdings) Limited (ADR) (NYSE:WNS). This group of stocks’ market values resemble HMY’s market value.

As you can see these stocks had an average of 13 hedge funds with bullish positions and the average amount invested in these stocks was $73 million. That figure was $29 million in HMY’s case. II-VI, Inc. (NASDAQ:IIVI) is the most popular stock in this table. On the other hand AAON, Inc. (NASDAQ:AAON) is the least popular one with only 9 bullish hedge fund positions. Compared to these stocks Harmony Gold Mining Co. (ADR) (NYSE:HMY) is even less popular than AAON. 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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