Should You Avoid Tuesday Morning Corporation (TUES)?

Judging by the fact that Tuesday Morning Corporation (NASDAQ:TUES) has faced bearish sentiment from hedge fund managers, logic holds that there was a specific group of money managers who were dropping their positions entirely by the end of the third quarter. Intriguingly, Steve Cohen’s Point72 Asset Management cashed in the biggest position of the 700 funds watched by Insider Monkey, totaling about $2.5 million in stock, and Jonathan Soros’s JS Capital was right behind this move, as the fund sold off about $0.3 million worth of shares.

Let’s check out hedge fund activity in other stocks – not necessarily in the same industry as Tuesday Morning Corporation (NASDAQ:TUES) but similarly valued. These stocks are Clearfield, Inc. (NASDAQ:CLFD), AgroFresh Solutions Inc (NASDAQ:AGFS), Malibu Boats Inc (NASDAQ:MBUU), and DSP Group, Inc. (NASDAQ:DSPG). This group of stocks’ market valuations resemble TUES’s market valuation.

As you can see these stocks had an average of 10 hedge funds with bullish positions and the average amount invested in these stocks was $25 million. That figure was $31 million in TUES’s case. Malibu Boats Inc (NASDAQ:MBUU) is the most popular stock in this table. On the other hand Clearfield, Inc. (NASDAQ:CLFD) is the least popular one with only 5 bullish hedge fund positions. Tuesday Morning Corporation (NASDAQ:TUES) 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 MBUU might be a better candidate to consider taking a long position in.

Disclosure: none.