Should You Buy CPI Card Group Inc (PMTS)?

Now, some big names have jumped into CPI Card Group Inc (NASDAQ:PMTS) headfirst. Sabal Capital Management established the biggest position in PennyMac Mortgage Investment Trust (NASDAQ:PMTS). According to its latest 13F filing, the fund had $3.3 million invested in the company at the end of the quarter. Renaissance Technologies also initiated a $0.9 million position during the quarter. The only other fund with a brand new PMTS position is Ken Griffin’s Citadel Investment Group.

Let’s also examine hedge fund activity in other stocks similar to CPI Card Group Inc (NASDAQ:PMTS). These stocks are Tucows Inc. (USA) (NASDAQ:TCX), Western Ast Clymr Infl Lkd Sc & Incm Fd (NYSE:WIA), Hometrust Bancshares Inc (NASDAQ:HTBI), and Baozun Inc (ADR) (NASDAQ:BZUN). This group of stocks’ market valuations are closest to PMTS’s market valuation.

As you can see these stocks had an average of 7 hedge funds with bullish positions and the average amount invested in these stocks was $24 million. That figure was $15 million in PMTS’s case. Hometrust Bancshares Inc (NASDAQ:HTBI) is the most popular stock in this table. On the other hand Western Ast Clymr Infl Lkd Sc & Incm Fd (NYSE:WIA) is the least popular one with only 4 bullish hedge fund positions. Compared to these stocks CPI Card Group Inc (NASDAQ:PMTS) is more popular among hedge funds. Considering that hedge funds are fond of this stock in relation to its market cap peers, it may be a good idea to analyze it in detail and potentially include it in your portfolio.

Disclosure: none.