Luminex Corporation (LMNX): Are Hedge Funds Right About This Stock?

We already know that not all hedge funds are bullish on the stock and some hedge funds actually sold off their positions entirely. Interestingly, Neil Chriss’s Hutchin Hill Capital sold off the largest investment of all the hedgies tracked by Insider Monkey, totaling about $0.8 million in stock. Peter Muller’s fund, PDT Partners, also said goodbye to its stock, about $0.6 million worth.

Let’s go over hedge fund activity in other stocks – not necessarily in the same industry as Luminex Corporation (NASDAQ:LMNX) but similarly valued. We will take a look at State Auto Financial (NASDAQ:STFC), Scientific Games Corp (NASDAQ:SGMS), Synergy Pharmaceuticals Inc (NASDAQ:SGYP), and Hyster-Yale Materials Handling Inc (NYSE:HY). All of these stocks’ market caps resemble LMNX’s market cap.

Ticker No of HFs with positions Total Value of HF Positions (x1000) Change in HF Position
STFC 4 15412 -1
SGMS 24 352721 3
SGYP 23 245912 3
HY 10 38550 1

As you can see these stocks had an average of 15.25 hedge funds with bullish positions and the average amount invested in these stocks was $163 million. That figure was $110 million in LMNX’s case. Scientific Games Corp (NASDAQ:SGMS) is the most popular stock in this table. On the other hand State Auto Financial (NASDAQ:STFC) is the least popular one with only 4 bullish hedge fund positions. Luminex Corporation (NASDAQ:LMNX) 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 SGMS might be a better candidate to consider taking a long position in.