KMG Chemicals, Inc. (KMG): Hedge Funds Are Snapping Up

Consequently, some big names have been driving this bullishness. Glenn Russell Dubin of Highbridge Capital Management established the most valuable position in KMG Chemicals, Inc. (NYSE:KMG). Highbridge Capital Management had $0.4 million invested in the company at the end of the quarter.

Let’s go over hedge fund activity in other stocks – not necessarily in the same industry as KMG Chemicals, Inc. (NYSE:KMG) but similarly valued. These stocks are ChannelAdvisor Corp (NYSE:ECOM), Pacific Continental Corporation (NASDAQ:PCBK), Aratana Therapeutics Inc (NASDAQ:PETX), and United Community Financial Corp (NASDAQ:UCFC). All of these stocks’ market caps are similar to KMG’s market cap.

Ticker No of HFs with positions Total Value of HF Positions (x1000) Change in HF Position
ECOM 10 14011 1
PCBK 5 28697 0
PETX 17 41648 8
UCFC 8 33765 0

As you can see these stocks had an average of 10 hedge funds with bullish positions and the average amount invested in these stocks was $30 million. That figure was $66 million in KMG’s case. Aratana Therapeutics Inc (NASDAQ:PETX) is the most popular stock in this table. On the other hand Pacific Continental Corporation (NASDAQ:PCBK) is the least popular one with only 5 bullish hedge fund positions. KMG Chemicals, Inc. (NYSE:KMG) 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 PETX might be a better candidate to consider taking a long position in.

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Disclosure: None