Dear Valued Visitor,

We have noticed that you are using an ad blocker software.

Although advertisements on the web pages may degrade your experience, our business certainly depends on them and we can only keep providing you high-quality research based articles as long as we can display ads on our pages.

To view this article, you can disable your ad blocker and refresh this page or simply login.

We only allow registered users to use ad blockers. You can sign up for free by clicking here or you can login if you are already a member.

Nothing About Primoris Services Corp (PRIM) Is Exciting Investors

Billionaire hedge fund managers such as Steve Cohen and Stan Druckenmiller can generate millions or even billions of dollars every year by pinning down high-potential small-cap stocks and pouring cash into these candidates. Small-cap stocks are overlooked by most investors, brokerage houses, and financial services hubs, while the unlimited research abilities of the big players within the hedge fund industry can easily identify the undervalued and high-potential stocks that reside in the ignored corners of equity markets. There are numerous small-cap stocks that have turned out to be great winners, which is one of the main reasons the Insider Monkey team pays close attention to the hedge fund activity in relation to these stocks.

Primoris Services Corp (NASDAQ:PRIM) shares haven’t seen a lot of action during the third quarter. Overall, hedge fund sentiment was unchanged. The stock was in 6 hedge funds’ portfolios at the end of September. The level and the change in hedge fund popularity aren’t the only variables you need to analyze to decipher hedge funds’ perspectives. A stock may witness a boost in popularity but it may still be less popular than similarly priced stocks. That’s why at the end of this article we will examine companies such as Barnes & Noble, Inc. (NYSE:BKS), Gray Television, Inc. (NYSE:GTN), and Q2 Holdings Inc (NYSE:QTWO) to gather more data points.

Follow Primoris Services Corp (NASDAQ:PRIM)
Trade (NASDAQ:PRIM) Now!

If you’d ask most shareholders, hedge funds are perceived as worthless, outdated investment vehicles of years past. While there are more than 8,000 funds with their doors open at the moment, we hone in on the leaders of this group, about 700 funds. These hedge fund managers administer the bulk of the smart money’s total capital, and by tracking their unrivaled stock picks, Insider Monkey has unsheathed many investment strategies that have historically outstripped the market. Insider Monkey’s small-cap hedge fund strategy outstripped the S&P 500 index by 12 percentage points a year for a decade in their back tests.

With all of this in mind, let’s analyze the fresh action surrounding Primoris Services Corp (NASDAQ:PRIM).

How have hedgies been trading Primoris Services Corp (NASDAQ:PRIM)?

At Q3’s end, a total of 6 of the hedge funds tracked by Insider Monkey were long this stock, unchanged from the previous quarter. With hedgies’ positions undergoing their usual ebb and flow, there exists an “upper tier” of notable hedge fund managers who were upping their holdings considerably (or had already accumulated large positions).

According to Insider Monkey’s hedge fund database, Citadel Investment Group, managed by Ken Griffin, holds the most valuable position in Primoris Services Corp (NASDAQ:PRIM). Citadel Investment Group has a $7.2 million position in the stock, comprising less than 0.1% of its 13F portfolio. Coming in second is Point72 Asset Management, managed by Steve Cohen, which holds a $5.9 million position; the fund has less than 0.1% of its 13F portfolio invested in the stock. Other professional money managers that are bullish consist of Tim Curro’s Value Holdings LP, Jeffrey Moskowitz’s Harvey Partners, and Roger Ibbotson’s Zebra Capital Management.

Earlier we told you that the aggregate hedge fund interest in the stock was unchanged and we view this as a negative development. Even though there weren’t any hedge funds dumping their holdings during the third quarter, there weren’t any hedge funds initiating brand new positions either. This indicates that hedge funds, at the very best, perceive this stock as dead money and haven’t identified any viable catalysts to attract their attention.

Let’s go over hedge fund activity in other stocks similar to Primoris Services Corp (NASDAQ:PRIM). We will take a look at Barnes & Noble, Inc. (NYSE:BKS), Gray Television, Inc. (NYSE:GTN), Q2 Holdings Inc (NYSE:QTWO), and LDR Holding Corp (NASDAQ:LDRH). This group of stocks’ market valuations resemble Primoris Services Corp’s market valuation.

Ticker No of HFs with positions Total Value of HF Positions (x1000) Change in HF Position
BKS 23 224788 -8
GTN 29 171714 -4
QTWO 22 71440 6
LDRH 11 100571 -3

As you can see these stocks had an average of 21.25 hedge funds with bullish positions and the average amount invested in these stocks was $142 million. That figure was $24 million in Primoris Services Corp’s case. Gray Television, Inc. (NYSE:GTN) is the most popular stock in this table. On the other hand LDR Holding Corp (NASDAQ:LDRH) is the least popular one with only 11 bullish hedge fund positions. Compared to these stocks Primoris Services Corp (NASDAQ:PRIM) is even less popular than LDR Holding Corp. Considering that hedge funds aren’t nearly as 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.

DOWNLOAD FREE REPORT: Warren Buffett's Best Stock Picks

Let Warren Buffett, George Soros, Steve Cohen, and Daniel Loeb WORK FOR YOU.

If you want to beat the low cost index funds by 19 percentage points per year, look no further than our monthly newsletter.In this free report you can find an in-depth analysis of the performance of Warren Buffett's entire historical stock picks. We uncovered Warren Buffett's Best Stock Picks and a way to for Buffett to improve his returns by more than 4 percentage points per year.

Bonus Biotech Stock Pick: You can also find a detailed bonus biotech stock pick that we expect to return more than 50% within 12 months.
Subscribe me to Insider Monkey's Free Daily Newsletter
This is a FREE report from Insider Monkey. Credit Card is NOT required.