Should You Buy Clearwater Paper Corp (CLW)?

Let’s now review hedge fund activity in other stocks – not necessarily in the same industry as Clearwater Paper Corp (NYSE:CLW) but similarly valued. These stocks are Scientific Games Corp (NASDAQ:SGMS), Sucampo Pharmaceuticals, Inc. (NASDAQ:SCMP), QLogic Corporation (NASDAQ:QLGC), and MTS Systems Corporation (NASDAQ:MTSC). All of these stocks’ market caps are closest to CLW’s market cap.

As you can see these stocks had an average of 22 hedge funds with bullish positions and the average amount invested in these stocks was $175 million. That figure was $40 million in CLW’s case. Scientific Games Corp (NASDAQ:SGMS) is the most popular stock in this table. On the other hand MTS Systems Corporation (NASDAQ:MTSC) is the least popular one with only 12 bullish hedge fund positions. Compared to these stocks Clearwater Paper Corp (NYSE:CLW) is even less popular than MTSC. 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.