Is Precision Drilling Corp (USA) (PDS) A Good Stock To Buy?

Seeing as Precision Drilling Corp (USA) (NYSE:PDS) has experienced falling interest from the entirety of the hedge funds we track, it’s easy to see that there is a sect of hedgies that decided to sell off their positions entirely heading into Q4. Interestingly, John Overdeck and David Siegel’s Two Sigma Advisors cashed in the biggest stake of all the investors followed by Insider Monkey, valued at about $0.5 million in stock, and Matthew Hulsizer’s PEAK6 Capital Management was right behind this move, as the fund dropped about $0.1 million worth of shares.

Let’s now review hedge fund activity in other stocks similar to Precision Drilling Corp (USA) (NYSE:PDS). We will take a look at Aerojet Rocketdyne Holdings Inc (NYSE:AJRD), Supernus Pharmaceuticals Inc (NASDAQ:SUPN), Benchmark Electronics, Inc. (NYSE:BHE), and Sears Holdings Corporation (NASDAQ:SHLD). This group of stocks’ market caps are closest to PDS’s market cap.

As you can see these stocks had an average of 16.5 hedge funds with bullish positions and the average amount invested in these stocks was $312 million. That figure was $46 million in PDS’s case. Supernus Pharmaceuticals Inc (NASDAQ:SUPN) is the most popular stock in this table. On the other hand Aerojet Rocketdyne Holdings Inc (NYSE:AJRD) is the least popular one with only 14 bullish hedge fund positions. Compared to these stocks Precision Drilling Corp (USA) (NYSE:PDS) is even less popular than AJRD. 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.