What Smart Money Thinks about Echo Global Logistics, Inc. (ECHO)?

Due to the fact that Echo Global Logistics, Inc. (NASDAQ:ECHO) has weathered falling interest from the entirety of the hedge funds we track, it’s safe to say that there was a specific group of funds that decided to sell off their entire stakes last quarter. Intriguingly, Richard Driehaus’ Driehaus Capital said goodbye to the largest investment of all the investors monitored by Insider Monkey, comprising an estimated $2.5 million in stock. Richard Chilton’s fund, Chilton Investment Company, also cut its stock, about $1.5 million worth.

Let’s now take a look at hedge fund activity in other stocks similar to Echo Global Logistics, Inc. (NASDAQ:ECHO). These stocks are CommerceHub Inc (NASDAQ:CHUBA), Heron Therapeutics Inc (NASDAQ:HRTX), Rent-A-Center Inc (NASDAQ:RCII), and Capella Education Company (NASDAQ:CPLA). This group of stocks’ market valuations match ECHO’s market valuation.

As you can see these stocks had an average of 16 hedge funds with bullish positions and the average amount invested in these stocks was $158 million. That figure was $38 million in ECHO’s case. CommerceHub Inc (NASDAQ:CHUBA) and Rent-A-Center Inc (NASDAQ:RCII) are the most popular stocks in this table. On the other hand Heron Therapeutics Inc (NASDAQ:HRTX) is the least popular one with only 12 bullish hedge fund positions. Compared to these stocks Echo Global Logistics, Inc. (NASDAQ:ECHO) is even less popular than HRTX. 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