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Is K2M Group Holdings Inc (KTWO) A Good Stock To Buy?

As aggregate interest increased, specific money managers were breaking ground themselves. Point72 Asset Management established the biggest position in K2M Group Holdings Inc (NASDAQ:KTWO). Peter Muller’s PDT Partners also made a $0.3 million investment in the stock during the quarter. The only other fund with a brand new KTWO position is Paul Tudor Jones’ Tudor Investment Corp.

Let’s go over hedge fund activity in other stocks similar to K2M Group Holdings Inc (NASDAQ:KTWO). We will take a look at James River Group Holdings Ltd (NASDAQ:JRVR), Kforce Inc. (NASDAQ:KFRC), and Coherus Biosciences Inc (NASDAQ:CHRS). This group of stocks’ market caps are closest to KTWO’s market cap.

Ticker No of HFs with positions Total Value of HF Positions (x1000) Change in HF Position
JRVR 13 448703 4
KFRC 20 71062 2
CHRS 17 98593 -2

As you can see these stocks had an average of 16 hedge funds with bullish positions and the average amount invested in these stocks was $192 million, versus $45 million in KTWO’s case. Kforce Inc. (NASDAQ:KFRC) is the most popular stock in this table, while James River Group Holdings Ltd (NASDAQ:JRVR) is the least popular one. Compared to these stocks K2M Group Holdings Inc (NASDAQ:KTWO) is even less popular than James River Group Holdings. 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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