We view hedge fund activity in the stock unfavorable, but in this case there was only a single hedge fund selling its entire position: Laurion Capital Management. One hedge fund selling its entire position doesn’t always imply a bearish intent. Theoretically a hedge fund may decide to sell a promising position in order to invest the proceeds in a more promising idea. However, we don’t think this is the case in this case because none of the 700+ hedge funds tracked by Insider Monkey identified TWIN as a viable investment and initiated a position in the stock.
Let’s now take a look at hedge fund activity in other stocks – not necessarily in the same industry as Twin Disc, Incorporated (NASDAQ:TWIN) but similarly valued. We will take a look at Talend SA ADR (NASDAQ:TLND), YuMe Inc (NYSE:YUME), Pure Cycle Corporation (NASDAQ:PCYO), and Points International Ltd (USA) (NASDAQ:PCOM). This group of stocks’ market values match TWIN’s market value.
|Ticker||No of HFs with positions||Total Value of HF Positions (x1000)||Change in HF Position|
As you can see these stocks had an average of 7 hedge funds with bullish positions and the average amount invested in these stocks was $25 million. That figure was $17 million in TWIN’s case. YuMe Inc (NYSE:YUME) is the most popular stock in this table. On the other hand Points International Ltd (USA) (NASDAQ:PCOM) is the least popular one with only 5 bullish hedge fund positions. Twin Disc, Incorporated (NASDAQ:TWIN) 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 YUME might be a better candidate to consider taking a long position in.