Should You Avoid Cantel Medical Corp. (CMN)?

We already know that not all hedge funds are bullish on the stock and some hedge funds actually dropped their positions entirely. Intriguingly, Richard Driehaus’ Driehaus Capital dropped the biggest investment of the “upper crust” of funds followed by Insider Monkey, totaling an estimated $2.5 million in stock. George Hall’s fund, Clinton Group, also dropped its stock, about $0.5 million worth.

Let’s check out hedge fund activity in other stocks – not necessarily in the same industry as Cantel Medical Corp. (NYSE:CMN) but similarly valued. These stocks are Catalent Inc (NYSE:CTLT), EnLink Midstream LLC (NYSE:ENLC), Helen of Troy Limited (NASDAQ:HELE), and NRG Yield, Inc. Class C (NYSE:NYLD). This group of stocks’ market values match CMN’s market value.

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 $121 million, which is lower than the $184 million figure in CMN’s case. NRG Yield, Inc. Class C (NYSE:NYLD) is the most popular stock in this table. On the other hand EnLink Midstream LLC (NYSE:ENLC) is the least popular one with only eight investors holding long positions. Cantel Medical Corp. (NYSE:CMN) 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 NRG Yield, Inc. Class C (NYSE:NYLD) might be a better candidate to consider taking a long position in.

Disclosure: None