Is Gentherm Inc (THRM) A Good Stock to Buy?

We already know that not all hedge funds are bullish on the stock and some hedge funds actually dropped their positions entirely. Interestingly, Scott Lawrence Swid’s SLS Management dropped the largest position of the 700 funds watched by Insider Monkey, worth an estimated $3.3 million in stock. Matthew Taylor and Ty Popplewell’s fund, Kortright Capital Partners, also said goodbye to its stock, about $1.7 million worth.

Let’s now take a look at hedge fund activity in other stocks – not necessarily in the same industry as Gentherm Inc (NASDAQ:THRM) but similarly valued. We will take a look at Tree.com Inc (NASDAQ:TREE), Calavo Growers, Inc. (NASDAQ:CVGW), Astronics Corporation (NASDAQ:ATRO), and Q2 Holdings Inc (NYSE:QTWO). This group of stocks’ market caps are similar to THRM’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 $55 million. That figure was $28 million in THRM’s case. Tree.com Inc (NASDAQ:TREE) is the most popular stock in this table. On the other hand Astronics Corporation (NASDAQ:ATRO) is the least popular one with only 9 bullish hedge fund positions. Gentherm Inc (NASDAQ:THRM) 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 TREE might be a better candidate to consider taking a long position in.

Disclosure: None