Ormat Technologies, Inc. (ORA): Are Hedge Funds Right About This Stock?

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Due to the fact that Ormat Technologies, Inc. (NYSE:ORA) has faced a declination in interest from the entirety of the hedge funds we track, it’s easy to see that there is a sect of hedge funds who were dropping their entire stakes in the third quarter. Intriguingly, Israel Englander’s Millennium Management cut the largest stake of the 700 funds followed by Insider Monkey, worth about $1.2 million in stock. John Overdeck and David Siegel’s fund, Two Sigma Advisors, also dropped its stock, about $0.6 million worth of shares. These moves are important to note, as total hedge fund interest dropped by 5 funds in the third quarter.

Let’s check out hedge fund activity in other stocks similar to Ormat Technologies, Inc. (NYSE:ORA). These stocks are Liberty Tripadvisor Holdings Inc (NASDAQ:LTRPA), Amicus Therapeutics, Inc. (NASDAQ:FOLD), Abengoa Yield PLC (NASDAQ:ABY), and International Bancshares Corp (NASDAQ:IBOC). This group of stocks’ market values are similar to Ormat Technologies, Inc. (NYSE:ORA)’s market value.

Ticker No of HFs with positions Total Value of HF Positions (x1000) Change in HF Position
LTRPA 27 622359 -6
FOLD 26 630704 -5
ABY 19 382687 -3
IBOC 12 31919 0

As you can see, these stocks had an average of 21 hedge funds with bullish positions and the average amount invested in these stocks was $417 million. That figure was $25 million in Ormat Technologies, Inc. (NYSE:ORA)’s case. Liberty Tripadvisor Holdings Inc (NASDAQ:LTRPA) is the most popular stock in this table. On the other hand, International Bancshares Corp (NASDAQ:IBOC) is the least popular one with only 12 bullish hedge fund positions. Compared to these stocks, Ormat Technologies, Inc. (NYSE:ORA) is even less popular than International Bancshares Corp (NASDAQ:IBOC). Considering that hedge funds aren’t 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. This isn’t necessarily bad news. Although it is possible that hedge funds may think the stock is overpriced and view the stock as a short candidate, they may not be very familiar with the bullish thesis. In either case, more research is warranted.

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