Is Rofin-Sinar Technologies (RSTI) A Good Stock To Buy?

As aggregate interest increased, key hedge funds have jumped into Rofin-Sinar Technologies (NASDAQ:RSTI) headfirst. Fisher Asset Management, managed by Ken Fisher, established the biggest position in Rofin-Sinar Technologies (NASDAQ:RSTI). Fisher Asset Management had $2.4 million invested in the company at the end of the quarter. Joel Greenblatt’s Gotham Asset Management also made a $0.9 million investment in the stock during the quarter. The other funds with new positions in the stock are Neil Chriss’s Hutchin Hill Capital, Paul Tudor Jones’s Tudor Investment Corp, and Ken Griffin’s Citadel Investment Group.

Let’s now review hedge fund activity in other stocks – not necessarily in the same industry as Rofin-Sinar Technologies (NASDAQ:RSTI) but similarly valued. We will take a look at ADTRAN, Inc. (NASDAQ:ADTN), Luminex Corporation (NASDAQ:LMNX), Harsco Corporation (NYSE:HSC), and Retrophin Inc (NASDAQ:RTRX). This group of stocks’ market valuations are closest to RSTI’s market valuation.

As you can see these stocks had an average of 18 hedge funds with bullish positions and the average amount invested in these stocks was $133 million. That figure was $91 million in RSTI’s case. Luminex Corporation (NASDAQ:LMNX) is the most popular stock in this table. On the other hand ADTRAN, Inc. (NASDAQ:ADTN) is the least popular one with only 11 bullish hedge fund positions. Rofin-Sinar Technologies (NASDAQ:RSTI) is not the least popular stock in this group, but hedge fund interest is still below average. This is a slightly negative signal and we’d rather spend our time researching stocks that hedge funds are piling on. In this regard LMNX might be a better candidate to consider a long position.