Is Modine Manufacturing Co. (MOD) A Good Stock To Buy?

We view hedge fund activity in the stock unfavorable, but in this case there was only a single hedge fund selling its entire position: Algert Coldiron Investors. One hedge fund selling its entire position doesn’t always imply a bearish intent. Theoretically a hedge fund may decide to sell a promising position in order to invest the proceeds in a more promising idea. However, we don’t think this is the case in this case because none of the 700+ hedge funds tracked by Insider Monkey identified MOD as a viable investment and initiated a position in the stock.

Let’s now take a look at hedge fund activity in other stocks – not necessarily in the same industry as Modine Manufacturing Co. (NYSE:MOD) but similarly valued. These stocks are Amarin Corporation plc (ADR) (NASDAQ:AMRN), TETRA Technologies, Inc. (NYSE:TTI), Ashford Hospitality Trust, Inc. (NYSE:AHT), and Great Southern Bancorp, Inc. (NASDAQ:GSBC). All of these stocks’ market caps match MOD’s market cap.

As you can see these stocks had an average of 14 hedge funds with bullish positions and the average amount invested in these stocks was $82 million. That figure was $44 million in MOD’s case. Amarin Corporation plc (ADR) (NASDAQ:AMRN) is the most popular stock in this table. On the other hand Great Southern Bancorp, Inc. (NASDAQ:GSBC) is the least popular one with only 6 bullish hedge fund positions. Modine Manufacturing Co. (NYSE:MOD) 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 AMRN might be a better candidate to consider taking a long position in.

Disclosure: None