Is USA Technologies, Inc. (USAT) a Good Stock to Buy?

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As industrywide interest jumped, key hedge funds were breaking ground themselves. Mark Broach’s Manatuck Hill Partners initiated a $0.8 million position during the quarter. Ken Griffin’s Citadel Investment Group also started a position.

Let’s go over hedge fund activity in other stocks similar to USA Technologies, Inc. (NASDAQ:USAT). We will take a look at Old Line Bancshares, Inc. (MD) (NASDAQ:OLBK), Equity BancShares Inc (NASDAQ:EQBK), MCBC Holdings Inc (NASDAQ:MCFT), and Great Lakes Dredge & Dock Corporation (NASDAQ:GLDD). This group of stocks’ market valuations are closest to USAT’s market valuation.

Ticker No of HFs with positions Total Value of HF Positions (x1000) Change in HF Position
OLBK 3 11925 -1
EQBK 6 33629 0
MCFT 15 99927 3
GLDD 11 8898 1

As you can see these stocks had an average of 8.75 hedge funds with bullish positions and the average amount invested in these stocks was $39 million. That figure was $6 million in USAT’s case. MCBC Holdings Inc (NASDAQ:MCFT) is the most popular stock in this table. On the other hand Old Line Bancshares, Inc. (MD) (NASDAQ:OLBK) is the least popular one with only 3 bullish hedge fund positions. USA Technologies, Inc. (NASDAQ:USAT) 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 MCFT might be a better candidate to consider taking a long position in.

Disclosure: None


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