Is Raven Industries, Inc. (RAVN) A Buy After Landing Defense Contract?

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Raven Industries, Inc. (NASDAQ:RAVN)‘s stock has dropped by more than 20% since the beginning of the year, but gained more than 11% on Monday after the diversified technology company was awarded an aerostat contract worth around $6 million. As the news about this contract broke, Raven Industries, Inc. (NASDAQ:RAVN) ‘s stock rallied, gaining $2.14 per share for the day. According to its firm-fixed price contract with the Naval Air Warfare Center Aircraft Division Lakehurst in New Jersey, the company will supply Exportable Persistent Ground Surveillance Systems and equipment, and give needed technical support for the system. Raven Industries, Inc. (NASDAQ:RAVN) stock has one ‘Strong Buy’ rating and one ‘Hold’ rating from analysts. Let’s look at some additional valuable indicators, including hedge fund sentiment, to see if this is a stock worth adding to your portfolio now.

Raven, Crow


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The number of hedge fund positions in a company and the quarterly changes to those positions give us a clear indication of how hedge funds, which are run and powered by some of the most astute minds in finance, feel about a stock. For Raven Industries, Inc. (NASDAQ:RAVN), the number of hedge fund positions in the stock went up to 9 by the end of first quarter, from 8 at the end of 2014. Overall aggregate capital invested in the stock by hedge funds also increased by 3.6% to $46.25 million by the end of first quarter. This shows solid hedge fund sentiment on the stock.

Insider activity on the stock gives another valuable perspective as well. There were no insider sales of the stock filed in the first quarter. But there were a few insider purchases in the second quarter. Director at Raven Industries, Inc. (NASDAQ:RAVN), Marc Lebaron purchased 5,000 shares in April. Another Director, Jason Andringa purchased 2,488 shares in May, and VP and GM Brian Meyer purchased 1,000 shares earlier this month. Insider purchases are a strong indicator, and Raven had multiple.

Let’s take a look at the key hedge fund action encompassing Raven Industries, Inc. (NASDAQ:RAVN) now.

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