Do Hedge Funds Love Paratek Pharmaceuticals Inc (PRTK)?

Because Paratek Pharmaceuticals Inc (NASDAQ:PRTK) has faced a falling interest from the entirety of the hedge funds we track, it’s safe to say that there were a few fund managers that elected to cut their full holdings last quarter. Interestingly, Israel Englander’s Millennium Management dumped the biggest position of the “upper crust” of funds tracked by Insider Monkey, worth an estimated $1 million in stock. Peter Muller’s fund, PDT Partners, also cut its stock, about $0.4 million worth of shares. These moves are intriguing to say the least, as aggregate hedge fund interest dropped by 3 funds last quarter.

Let’s now take a look at hedge fund activity in other stocks – not necessarily in the same industry as Paratek Pharmaceuticals Inc (NASDAQ:PRTK) but similarly valued. We will take a look at SunOpta, Inc. (USA) (NASDAQ:STKL), GenMark Diagnostics, Inc (NASDAQ:GNMK), NewBridge Bancorp (NASDAQ:NBBC), and Neos Therapeutics Inc (NASDAQ:NEOS). This group of stocks’ market caps matches Paratek Pharmaceuticals Inc (NASDAQ:PRTK)’s market cap.

As you can see, these stocks had an average of 13 hedge funds with bullish positions and the average amount invested in these stocks was $79 million. That figure was $72 million in Paratek Pharmaceuticals Inc (NASDAQ:PRTK)’s case. SunOpta, Inc. (USA) (NASDAQ:STKL) is the most popular stock in this table. On the other hand, Neos Therapeutics Inc (NASDAQ:NEOS) is the least popular one with only 9 bullish hedge fund positions. Compared to these stocks, Paratek Pharmaceuticals Inc (NASDAQ:PRTK) is even less popular than Neos Therapeutics Inc (NASDAQ:NEOS). 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.