Should You Add Tennant Company (TNC) To Your Portfolio?

Due to the fact that Tennant Company (NYSE:TNC) has witnessed bearish sentiment from the aggregate hedge fund industry, it’s safe to say that there was a specific group of hedge funds that decided to sell off their full holdings by the end of the third quarter. Interestingly, Ken Grossman and Glen Schneider’s SG Capital Management cashed in the biggest position of the “upper crust” of funds studied by Insider Monkey, worth about $5.9 million in stock. D. E. Shaw’s fund, D E Shaw, also cut its stock, about $1 million worth.

Let’s go over hedge fund activity in other stocks similar to Tennant Company (NYSE:TNC). These stocks are Super Micro Computer, Inc. (NASDAQ:SMCI), Oxford Industries, Inc. (NYSE:OXM), Beneficial Mutual Bancorp Inc (NASDAQ:BNCL), and Penn National Gaming, Inc (NASDAQ:PENN). All of these stocks’ market caps match TNC’s market cap.

As you can see these stocks had an average of 17 hedge funds with bullish positions and the average amount invested in these stocks was $155 million. That figure was $117 million in TNC’s case. Penn National Gaming, Inc (NASDAQ:PENN) is the most popular stock in this table. On the other hand Super Micro Computer, Inc. (NASDAQ:SMCI) is the least popular one with only 13 bullish hedge fund positions. Compared to these stocks Tennant Company (NYSE:TNC) is even less popular than SMCI. 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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Disclosure: None