Is Summit Hotel Properties Inc (INN) A Good Stock to Buy?

As industry-wide interest jumped, some big names were breaking ground themselves. Matthew Tewksbury’s Stevens Capital Management established the most outsized position in Summit Hotel Properties Inc (NYSE:INN). Stevens Capital Management had $0.4 million invested in the company at the end of the quarter. John Overdeck and David Siegel’s Two Sigma Advisors also initiated a $0.4 million position during the quarter. The only other fund with a brand new INN position was Mike Vranos’ Ellington.

Let’s go over hedge fund activity in other stocks similar to Summit Hotel Properties Inc (NYSE:INN). We will take a look at TTM Technologies, Inc. (NASDAQ:TTMI), Gentherm Inc (NASDAQ:THRM), Tree.com Inc (NASDAQ:TREE), and Calavo Growers, Inc. (NASDAQ:CVGW). This group of stocks’ market values match INN’s market value.

As you can see these stocks had an average of 17 hedge funds with bullish positions and the average amount invested in these stocks was $71 million. That figure was $27 million in INN’s case. TTM Technologies, Inc. (NASDAQ:TTMI) is the most popular stock in this table. On the other hand Gentherm Inc (NASDAQ:THRM) is the least popular one with only 11 bullish hedge fund positions. Compared to these stocks Summit Hotel Properties Inc (NYSE:INN) is even less popular than THRM. 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.

Disclosure: None