Is Patrick Industries, Inc. (PATK) A Good Stock To Buy?

Seeing as Patrick Industries, Inc. (NASDAQ:PATK) has experienced falling interest from the entirety of the hedge funds we track, logic holds that there is a sect of fund managers who were dropping their full holdings heading into Q4. At the top of the heap, Julian Allen’s Spitfire Capital said goodbye to the largest stake of the 700 funds monitored by Insider Monkey, totaling about $5.9 million in stock. Mark Coe’s fund, Coe Capital Management, also dumped its stock, about $0.8 million worth. These moves are intriguing to say the least, as total hedge fund interest was cut by 1 funds heading into Q4.

Let’s also examine hedge fund activity in other stocks similar to Patrick Industries, Inc. (NASDAQ:PATK). These stocks are Pier 1 Imports, Inc. (NYSE:PIR), FARO Technologies, Inc. (NASDAQ:FARO), Altra Holdings, Inc. (NASDAQ:AIMC), and CTS Corporation (NYSE:CTS). This group of stocks’ market values are closest to PATK’s market value.

Ticker No of HFs with positions Total Value of HF Positions (x1000) Change in HF Position
PIR 19 47350 0
FARO 7 25745 0
AIMC 7 20354 0
CTS 8 73333 -1

As you can see these stocks had an average of 10.25 hedge funds with bullish positions and the average amount invested in these stocks was $42 million. That figure was $106 million in PATK’s case. Pier 1 Imports, Inc. (NYSE:PIR) is the most popular stock in this table. On the other hand FARO Technologies, Inc. (NASDAQ:FARO) is the least popular one with only 7 bullish hedge fund positions. Patrick Industries, Inc. (NASDAQ:PATK) 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 PIR might be a better candidate to consider a long position.