Is Universal Electronics Inc (UEIC) a Good Stock to Buy?

As aggregate interest increased, specific money managers were breaking ground themselves. Arrowstreet Capital, led by Peter Rathjens, Bruce Clarke and John Campbell, established the most outsized position in Universal Electronics Inc (NASDAQ:UEIC). Arrowstreet Capital had $2.2 million invested in the company at the end of the quarter. Glenn Russell Dubin’s Highbridge Capital Management also made a $0.7 million investment in the stock during the quarter.

Let’s go over hedge fund activity in other stocks – not necessarily in the same industry as Universal Electronics Inc (NASDAQ:UEIC) but similarly valued. We will take a look at Cliffs Natural Resources Inc (NYSE:CLF), Abercrombie & Fitch Co. (NYSE:ANF), United Fire Group, Inc. (NASDAQ:UFCS), and AAR Corp. (NYSE:AIR). All of these stocks’ market caps are closest to UEIC’s market cap.

As you can see these stocks had an average of 17 hedge funds with bullish positions and the average amount invested in these stocks was $137 million. That figure was $30 million in UEIC’s case. Cliffs Natural Resources Inc (NYSE:CLF) is the most popular stock in this table. On the other hand United Fire Group, Inc. (NASDAQ:UFCS) is the least popular one with only 9 bullish hedge fund positions. Compared to these stocks Universal Electronics Inc (NASDAQ:UEIC) is even less popular than UFCS. 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