Should You Buy Archrock Inc (AROC)?

With a general bullishness amongst the heavyweights, key money managers were breaking ground themselves. BlueCrest Capital Mgmt. was among the hedge funds initiating new positions in Archrock Inc (NYSE:AROC).

Let’s go over hedge fund activity in other stocks similar to Archrock Inc (NYSE:AROC). We will take a look at Otter Tail Corporation (NASDAQ:OTTR), Ultra Petroleum Corp. (NYSE:UPL), ScanSource, Inc. (NASDAQ:SCSC), and Xoom Corp (NASDAQ:XOOM). All of these stocks’ market caps are similar to Archrock Inc (NYSE:AROC)’s market cap.

As you can see, these stocks had an average of 15 hedge funds with bullish positions and the average amount invested in these stocks was $75 million. That figure was $28 million in Archrock Inc (NYSE:AROC)’s case. Ultra Petroleum Corp. (NYSE:UPL) is the most popular stock in this table. On the other hand, Otter Tail Corporation (NASDAQ:OTTR) is the least popular one with only 13 bullish hedge fund positions. Compared to these stocks, Archrock Inc (NYSE:AROC) is even less popular than Otter Tail Corporation (NASDAQ:OTTR). 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.