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Is L.B. Foster Co (FSTR) A Good Stock To Buy?

Because L.B. Foster Co (NASDAQ:FSTR) has sustained declining sentiment from the smart money, it’s easy to see that there exists a select few money managers that slashed their positions entirely last quarter. It’s worth mentioning that Benjamin A. Smith’s Laurion Capital Management dropped the biggest investment of the 700 funds monitored by Insider Monkey, totaling an estimated $0.3 million in stock, and Tim Curro’s Value Holdings LP was right behind this move, as the fund dumped about $0.2 million worth of shares.

Let’s now take a look at hedge fund activity in other stocks similar to L.B. Foster Co (NASDAQ:FSTR). We will take a look at The Eastern Company (NASDAQ:EML), Accuride Corporation (NYSE:ACW), Intevac, Inc. (NASDAQ:IVAC), and Luby’s, Inc. (NYSE:LUB). This group of stocks’ market caps are similar to FSTR’s market cap.

Ticker No of HFs with positions Total Value of HF Positions (x1000) Change in HF Position
EML 5 24198 0
ACW 16 34734 5
IVAC 7 20333 0
LUB 4 10914 0

As you can see these stocks had an average of 8 hedge funds with bullish positions and the average amount invested in these stocks was $23 million. That figure was $7 million in FSTR’s case. Accuride Corporation (NYSE:ACW) is the most popular stock in this table. On the other hand Luby’s, Inc. (NYSE:LUB) is the least popular one with only 4 bullish hedge fund positions. L.B. Foster Co (NASDAQ:FSTR) 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 ACW might be a better candidate to consider taking a long position in.

Disclosure: None

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