Hedge Fund Sentiment Is Stagnant On Summit Therapeutics PLC (ADR) (SMMT)

Earlier we told you that the aggregate hedge fund interest in the stock was unchanged and we view this as a negative development. Even though there weren’t any hedge funds dumping their holdings during the third quarter, there weren’t any hedge funds initiating brand new positions. This indicates that hedge funds, at the very best, perceive this stock as dead money and they haven’t identified any viable catalysts that can attract investor attention.

Let’s now review hedge fund activity in other stocks similar to Summit Therapeutics PLC (ADR) (NASDAQ:SMMT). We will take a look at Cenveo, Inc. (NYSE:CVO), Ignite Restaurant Group Inc (NASDAQ:IRG), Vince Holding Corp (NYSE:VNCE), and Liberator Medical Holdings Inc (NYSEMKT:LBMH). This group of stocks’ market values are similar to SMMT’s market value.

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 $15 million, lower than the $22 million in SMMT’s case. Vince Holding Corp (NYSE:VNCE) is the most popular stock in this table, while Liberator Medical Holdings Inc (NYSEMKT:LBMH) is the least popular one with only 7 bullish hedge fund positions. Compared to these stocks Summit Therapeutics PLC (ADR) (NASDAQ:SMMT) is even less popular than LBMH. 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.