Is Kronos Worldwide, Inc. (KRO) A Good Stock To Buy?

With general bullishness amongst the heavyweights, key hedge funds have been driving this bullishness. Arrowstreet Capital established the most outsized position in Kronos Worldwide, Inc. (NYSE:KRO). Peter Algert and Kevin Coldiron’s Algert Coldiron Investors also initiated a $0.3 million position during the quarter. The other funds with brand new KRO positions are Paul Marshall and Ian Wace’s Marshall Wace LLP and Gavin Saitowitz and Cisco J. del Valle’s Springbok Capital.

Let’s now review hedge fund activity in other stocks similar to Kronos Worldwide, Inc. (NYSE:KRO). These stocks are Team, Inc. (NYSE:TISI), Unit Corporation (NYSE:UNT), Navigant Consulting, Inc. (NYSE:NCI), and Cray Inc. (NASDAQ:CRAY). This group of stocks’ market values resemble KRO’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 $63 million. That figure was $11 million in KRO’s case. Unit Corporation (NYSE:UNT) is the most popular stock in this table. On the other hand Team, Inc. (NYSE:TISI) is the least popular one with only 8 bullish hedge fund positions. Compared to these stocks Kronos Worldwide, Inc. (NYSE:KRO) is only as popular as TISI. 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