Is Steel Dynamics, Inc. (STLD) A Good Stock To Buy?

Since Steel Dynamics, Inc. (NASDAQ:STLD) has experienced a declining sentiment from the aggregate hedge fund industry, it’s safe to say that there is a sect of hedge funds who were dropping their entire stakes by the end of the third quarter. It’s worth mentioning that Bruce J. Richards and Louis Hanover’s Marathon Asset Management said goodbye to the largest position of all the hedgies watched by Insider Monkey, valued at an estimated $16.1 million in stock, and Jacob Gottlieb’s Visium Asset Management was right behind this move, as the fund dumped about $15.9 million worth of shares. These transactions are important to note, as aggregate hedge fund interest fell by 6 funds by the end of the third quarter.

Let’s now review hedge fund activity in other stocks similar to Steel Dynamics, Inc. (NASDAQ:STLD). We will take a look at SolarCity Corp (NASDAQ:SCTY), GoPro Inc (NASDAQ:GPRO), AECOM (NYSE:ACM), and AptarGroup, Inc. (NYSE:ATR). This group of stocks’ market valuations is similar to Steel Dynamics, Inc. (NASDAQ:STLD)’s market valuation.

As you can see, these stocks had an average of 24 hedge funds with bullish positions and the average amount invested in these stocks was $415 million. That figure was $648 million in Steel Dynamics, Inc. (NASDAQ:STLD)’s case. SolarCity Corp (NASDAQ:SCTY) is the most popular stock in this table. On the other hand, AptarGroup, Inc. (NYSE:ATR) is the least popular one with only 18 bullish hedge fund positions. Steel Dynamics, Inc. (NASDAQ:STLD) 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, SolarCity Corp (NASDAQ:SCTY) might be a better candidate to consider a long position.