Should You Buy Ormat Technologies, Inc. (ORA)?

As industry-wide interest jumped, specific money managers were breaking ground themselves. Ellington, led by Mike Vranos, assembled the largest position in Ormat Technologies, Inc. (NYSE:ORA). Ellington had $0.5 million invested in the company at the end of the quarter. Israel Englander’s Millennium Management also initiated a $0.4 million position during the quarter. The only other fund with a new position in the stock is James Dondero’s Highland Capital Management.

Let’s go over hedge fund activity in other stocks similar to Ormat Technologies, Inc. (NYSE:ORA). We will take a look at Kennedy-Wilson Holdings Inc (NYSE:KW), Cal-Maine Foods Inc (NASDAQ:CALM), Myriad Genetics, Inc. (NASDAQ:MYGN), and Washington Real Estate Investment Trust (NYSE:WRE). All of these stocks’ market caps resemble ORA’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 $238 million. That figure was $73 million in ORA’s case. Myriad Genetics, Inc. (NASDAQ:MYGN) is the most popular stock in this table. On the other hand Kennedy-Wilson Holdings Inc (NYSE:KW) is the least popular one with only 11 bullish hedge fund positions. Ormat Technologies, Inc. (NYSE:ORA) 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 MYGN might be a better candidate to consider taking a long position in.

Disclosure: None