Is Nortek Inc (NTK) A Good Stock To Buy?

Now, key hedge funds have been driving this bullishness. Pentwater Capital Management, managed by Matthew Halbower, assembled the largest position in Nortek Inc (NASDAQ:NTK). Pentwater Capital Management had $2.5 million invested in the company at the end of the quarter. Peter Muller’s PDT Partners also initiated a $0.6 million position during the quarter. The following funds were also among the new NTK investors: Gavin Saitowitz and Cisco J. del Valle’s Springbok Capital, Lawrence Sapanski’s Scoria Capital, and Steve Cohen’s Point72 Asset Management.

Let’s check out hedge fund activity in other stocks – not necessarily in the same industry as Nortek Inc (NASDAQ:NTK) but similarly valued. We will take a look at Tennant Company (NYSE:TNC), Knight Capital Group Inc. (NYSE:KCG), NewLink Genetics Corp (NASDAQ:NLNK), and Synergy Resources Corp (NYSEAMEX:SYRG). This group of stocks’ market valuations are closest to NTK’s market valuation.

Ticker No of HFs with positions Total Value of HF Positions (x1000) Change in HF Position
TNC 14 111251 3
KCG 14 69189 -9
NLNK 13 132952 -2
SYRG 13 54308 -4

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 $92 million. That figure was $414 million in NTK’s case. Tennant Company (NYSE:TNC) is the most popular stock in this table, while NewLink Genetics Corp (NASDAQ:NLNK) is the least popular one with only 13 bullish hedge fund positions. Nortek Inc (NASDAQ:NTK) 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 TNC might be a better candidate to consider a long position.