Is Primoris Services Corp (PRIM) A Good Stock To Buy?

We already know that not all hedge funds are bullish on the stock and some hedge funds actually cut their positions entirely. It’s worth mentioning that Israel Englander’s Millennium Management cut the biggest position of all the hedgies watched by Insider Monkey, totaling an estimated $3.3 million in stock, and Paul Tudor Jones’s Tudor Investment Corp was right behind this move, as the fund dropped about $0.4 million worth of shares.

Let’s also examine hedge fund activity in other stocks similar to Primoris Services Corp (NASDAQ:PRIM). These stocks are Mpg Office Trust Inc (NYSE:MPG), Atlas Air Worldwide Holdings, Inc. (NASDAQ:AAWW), MBIA Inc. (NYSE:MBI), and Tutor Perini Corp (NYSE:TPC). All of these stocks’ market caps are similar to PRIM’s market cap.

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 $110 million. That figure was $27 million in PRIM’s case. MBIA Inc. (NYSE:MBI) is the most popular stock in this table. On the other hand Atlas Air Worldwide Holdings, Inc. (NASDAQ:AAWW) is the least popular one with only 11 bullish hedge fund positions. Compared to these stocks Primoris Services Corp (NASDAQ:PRIM) is even less popular than AAWW. 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.

Disclosure: None