Is LSI Industries, Inc. (LYTS) A Good Stock To Buy?

As industrywide interest jumped, key hedge funds have been driving this bullishness. Cove Street Capital initiated the largest position in LSI Industries, Inc. (NASDAQ:LYTS). Cove Street Capital had $1.2 million invested in the company at the end of the quarter. Ken Grossman and Glen Schneider’s SG Capital Management also initiated a $0.8 million position during the quarter. The only other fund with a new position in the stock is D E Shaw.

Let’s go over hedge fund activity in other stocks similar to LSI Industries, Inc. (NASDAQ:LYTS). We will take a look at Trecora Resources (NYSE:TREC), Heritage Oaks Bancorp (NASDAQ:HEOP), Orchids Paper Products Company (NYSEAMEX:TIS), and Carolina Financial Corp (NASDAQ:CARO). This group of stocks’ market valuations resemble LYTS’s market valuation.

Ticker No of HFs with positions Total Value of HF Positions (x1000) Change in HF Position
TREC 6 9798 0
HEOP 4 26403 -1
TIS 2 12263 -3
CARO 2 8642 0

As you can see these stocks had an average of 4 hedge funds with bullish positions and the average amount invested in these stocks was $14 million. That figure was $35 million in LYTS’s case. Trecora Resources (NYSE:TREC) is the most popular stock in this table. On the other hand Orchids Paper Products Company (NYSEAMEX:TIS) is the least popular one with only 2 bullish hedge fund positions. Compared to these stocks LSI Industries, Inc. (NASDAQ:LYTS) is more popular among hedge funds. Considering that hedge funds are fond of this stock in relation to its market cap peers, it may be a good idea to analyze it in detail and potentially include it in your portfolio.