Is Layne Christensen Company (LAYN) A Good Stock To Buy?

As one would reasonably expect, specific money managers have been driving this bullishness. Cove Street Capital, led by Jeffrey Bronchick, assembled the biggest position in Layne Christensen Company (NASDAQ:LAYN). According to regulatory filings, the fund had $2.3 million invested in the company at the end of the quarter. John Overdeck and David Siegel’s Two Sigma Advisors also initiated a $0.2 million position during the quarter.

Let’s go over hedge fund activity in other stocks – not necessarily in the same industry as Layne Christensen Company (NASDAQ:LAYN) but similarly valued. We will take a look at Era Group Inc (NYSE:ERA), Century Casinos, Inc. (NASDAQ:CNTY), Mediwound Ltd (NASDAQ:MDWD), and PFSweb, Inc. (NASDAQ:PFSW). This group of stocks’ market caps are similar to LAYN’s market cap.

As you can see these stocks had an average of 7 hedge funds with bullish positions and the average amount invested in these stocks was $21 million. That figure was $59 million in LAYN’s case. PFSweb, Inc. (NASDAQ:PFSW) is the most popular stock in this table. On the other hand Mediwound Ltd (NASDAQ:MDWD) is the least popular one with only 5 bullish hedge fund positions. Layne Christensen Company (NASDAQ:LAYN) is not the least popular stock in this group but hedge fund interest is still below average. This is a slightly negative signal and we’d rather spend our time researching stocks that hedge funds are piling on. In this regard PFSW might be a better candidate to consider taking a long position in.

Disclosure: none.