Do Hedge Funds Love DSP Group, Inc. (DSPG)?

Since DSP Group, Inc. (NASDAQ:DSPG) has experienced a declining sentiment from the smart money, it’s safe to say that there were a few hedgies that decided to sell off their positions entirely last quarter. It’s worth mentioning that Jeffrey Smith’s Starboard Value LP said goodbye to the biggest investment of all the hedgies tracked by Insider Monkey, comprising close to $2.4 million in stock, and Chao Ku’s Nine Chapters Capital Management was right behind this move, as the fund said goodbye to about $0.2 million worth of shares. These moves are interesting, as aggregate hedge fund interest was cut by 1 fund last quarter.

Let’s now take a look at hedge fund activity in other stocks similar to DSP Group, Inc. (NASDAQ:DSPG). These stocks are Park City Group, Inc. (NASDAQ:PCYG), Synthetic Biologics Inc (NYSEMKT:SYN), NTELOS Holdings Corp. (NASDAQ:NTLS), and Nivalis Therapeutics Inc (NASDAQ:NVLS). This group of stocks’ market valuations are closest to DSP Group, Inc. (NASDAQ:DSPG)’s market valuation.

As you can see, these stocks had an average of 11 hedge funds with bullish positions and the average amount invested in these stocks was $39 million. That figure was $32 million in DSP Group, Inc. (NASDAQ:DSPG)’s case. Nivalis Therapeutics Inc (NASDAQ:NVLS) is the most popular stock in this table. On the other hand, Park City Group, Inc. (NASDAQ:PCYG) is the least popular one with only 6 bullish hedge fund positions. DSP Group, Inc. (NASDAQ:DSPG) 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, Nivalis Therapeutics Inc (NASDAQ:NVLS) might be a better candidate to consider a long position.