Is NACCO Industries, Inc. (NC) A Good Stock To Buy According To Hedge Funds?

We already know that not all hedge funds are bullish on the stock and some hedge funds actually cashed in their positions entirely. Intriguingly, Peter Algert and Kevin Coldiron’s Algert Coldiron Investors cashed in the biggest position of the “upper crust” of funds watched by Insider Monkey, comprising about $0.4 million in stock. Glenn Russell Dubin’s fund, Highbridge Capital Management, also sold off its stock, about $0.3 million worth.

Let’s go over hedge fund activity in other stocks similar to NACCO Industries, Inc. (NYSE:NC). These stocks are Exar Corporation (NASDAQ:EXAR), Timkensteel Corp (NYSE:TMST), Harmonic Inc (NASDAQ:HLIT), and Sierra Wireless, Inc. (USA) (NASDAQ:SWIR). This group of stocks’ market values are closest to NC’s market value.

As you can see these stocks had an average of 10.75 hedge funds with bullish positions and the average amount invested in these stocks was $47 million. That figure was $21 million in NC’s case. Exar Corporation (NASDAQ:EXAR) is the most popular stock in this table. On the other hand Sierra Wireless, Inc. (USA) (NASDAQ:SWIR) is the least popular one with only 8 bullish hedge fund positions. Compared to these stocks NACCO Industries, Inc. (NYSE:NC) is even less popular than SWIR. 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. This isn’t necessarily bad news. Although it is possible that hedge funds may think the stock is overpriced and view the stock as a short candidate, they may not be very familiar with the bullish thesis. In either case more research is warranted.