Should You Buy Team, Inc. (TISI)?

As industrywide interest jumped, specific money managers were leading the bulls’ herd. Engine Capital, led by Arnaud Ajdler, assembled the largest position in Team, Inc. (NYSE:TISI). Engine Capital had $10.7 million invested in the company at the end of the quarter. Renaissance Technologies, one of the largest hedge funds in the world, also initiated a $2.2 million position during the quarter. The only other fund with a brand new TISI position is Michael Platt and William Reeves’s BlueCrest Capital Mgmt..

Let’s also examine hedge fund activity in other stocks – not necessarily in the same industry as Team, Inc. (NYSE:TISI) but similarly valued. We will take a look at Unit Corporation (NYSE:UNT), Navigant Consulting, Inc. (NYSE:NCI), Cray Inc. (NASDAQ:CRAY), and Bottomline Technologies (NASDAQ:EPAY). All of these stocks’ market caps are similar to TISI’s market cap.

As you can see these stocks had an average of 14.25 hedge funds with bullish positions and the average amount invested in these stocks was $48 million. That figure was $111 million in TISI’s case. Unit Corporation (NYSE:UNT) is the most popular stock in this table. On the other hand Navigant Consulting, Inc. (NYSE:NCI) is the least popular one with only 13 bullish hedge fund positions. Compared to these stocks Team, Inc. (NYSE:TISI) is even less popular than NCI. 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.

Disclosure: None