Is Universal Forest Products, Inc. (UFPI) A Good Stock To Buy?

As one would reasonably expect, some big names were leading the bulls’ herd. Covalent Capital Partners established the largest position in Universal Forest Products, Inc. (NASDAQ:UFPI). Covalent Capital Partners had $11.7 million invested in the company at the end of the quarter. Jim Simons’s Renaissance Technologies also initiated a $5.3 million position during the quarter. The other funds with brand new UFPI positions are Glenn Russell Dubin’s Highbridge Capital Management, and quant shops D E Shaw and AQR Capital Management.

Let’s check out hedge fund activity in other stocks similar to Universal Forest Products, Inc. (NASDAQ:UFPI). We will take a look at PennyMac Mortgage Investment Trust (NYSE:PMT), Flagstar Bancorp Inc (NYSE:FBC), NIC Inc. (NASDAQ:EGOV), and Smart & Final Stores Inc (NYSE:SFS). This group of stocks’ market caps are closest to UFPI’s market cap.

As you can see these stocks had an average of 15 hedge funds with bullish positions and the average amount invested in these stocks was $99 million. That figure was $76 million in UFPI’s case. PennyMac Mortgage Investment Trust (NYSE:PMT) is the most popular stock in this table. On the other hand Smart & Final Stores Inc (NYSE:SFS) is the least popular one with only 11 bullish hedge fund positions. Compared to these stocks Universal Forest Products, Inc. (NASDAQ:UFPI) is more popular among hedge funds. Considering that hedge funds are fond of this stock in relation to its market cap peers, it may be a good idea to analyze it in detail and potentially include it in your portfolio.