Is On Track Innovations Ltd. (USA) (OTIV) A Good Stock To Buy?

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With a general bullishness amongst the heavyweights, key hedge funds have jumped into On Track Innovations Ltd.(USA) (NASDAQ:OTIV) headfirst. Renaissance Technologies established the biggest position in On Track Innovations Ltd. (USA) (NASDAQ:OTIV). Renaissance Technologies had $28,000 invested in the company at the end of the quarter.

Let’s now take a look at hedge fund activity in other stocks similar to On Track Innovations Ltd. (USA) (NASDAQ:OTIV). These stocks are Cogentix Medical Inc (NASDAQ:CGNT), Summer Infant, Inc. (NASDAQ:SUMR), RMG Networks Holding Corporation (NASDAQ:RMGN), and Broadwind Energy Inc. (NASDAQ:BWEN). This group of stocks’ market valuations resembles On Track Innovations Ltd. (USA) (NASDAQ:OTIV)’s market valuation.

Ticker No of HFs with positions Total Value of HF Positions (x1000) Change in HF Position
CGNT 8 6588 0
SUMR 6 8188 1
RMGN 5 4032 0
BWEN 4 4128 -2

As you can see, these stocks had an average of 6 hedge funds with bullish positions and the average amount invested in these stocks was $6 million. That figure was $2 million in On Track Innovations Ltd. (USA) (NASDAQ:OTIV)’s case. Cogentix Medical Inc (NASDAQ:CGNT) is the most popular stock in this table. On the other hand, Broadwind Energy Inc. (NASDAQ:BWEN) is the least popular one with only 4 bullish hedge fund positions. Compared to these stocks, On Track Innovations Ltd.(USA) (NASDAQ:OTIV) is even less popular than Broadwind Energy Inc. (NASDAQ:BWEN). 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.

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