Is KEYW Holding Corp. (KEYW) a Good Buy?

Now, specific money managers have jumped into KEYW Holding Corp. (NASDAQ:KEYW) headfirst. Raging Capital Management, managed by William C. Martin, created the most valuable position in KEYW Holding Corp. (NASDAQ:KEYW). Raging Capital Management had $2.9 million invested in the company at the end of the quarter. Israel Englander’s Millennium Management also made a $0.5 million investment in the stock during the quarter. The following funds were also among the new KEYW investors: Joseph Mathias’s Concourse Capital Management and Daniel S. Och’s OZ Management.

Let’s now review hedge fund activity in other stocks – not necessarily in the same industry as KEYW Holding Corp. (NASDAQ:KEYW) but similarly valued. We will take a look at Limoneira Company (NASDAQ:LMNR), NVE Corporation (NASDAQ:NVEC), P.A.M. Transportation Services, Inc. (NASDAQ:PTSI), and Applied Genetic Technologies Corp (NASDAQ:AGTC). This group of stocks’ market caps resemble KEYW’s market cap.

As you can see these stocks had an average of 7.25 hedge funds with bullish positions and the average amount invested in these stocks was $25 million. That figure was $5 million in KEYW’s case. Applied Genetic Technologies Corp (NASDAQ:AGTC) is the most popular stock in this table. On the other hand P.A.M. Transportation Services, Inc. (NASDAQ:PTSI) is the least popular one with only 4 bullish hedge fund positions. KEYW Holding Corp. (NASDAQ:KEYW) is not the most popular stock in this group but hedge fund interest is still above average. This is a slightly positive signal but we’d rather spend our time researching stocks that hedge funds are piling on. In this regard AGTC might be a better candidate to consider a long position.