Hedge Fund Sentiment Suggest You Shouldn’t Buy These Three Stocks on the Dip

On the third spot is Finisar Corporation (NASDAQ:FNSR), which lost 10% in after-hours trading, after inching up by over 1% on Thursday. The company posted revenue of $314.03 million for the first quarter of fiscal 2016 ended August 1, down from $320.04 million a year earlier, while its net income slid to $0.03 per share from $0.07, amid a gross margin decline to 27.8%. Following the announcements of the results, Finisar, which develops optical subsystems and components, said that its CEO Eitan Gertal had resigned and Executive Chairman Jerry S. Rawls will take his role.

Despite the stock’s decline and the 23% drop registered since the beginning of the year, hedge funds seem to be bullish on Finisar Corporation (NASDAQ:FNSR), as at the end of June, 19 investors from our database held $164.29 million worth of stock, representing roughly 9% of the company. Moreover, as the stock lost 16% during the second quarter, the number of investors with long positions in Finisar went up by two, while the total value of their holdings fell from $232.46 million at the end of March. The largest position in Finisar Corporation (NASDAQ:FNSR) among the funds we track is held by Ken Fisher‘s Fisher Asset Management, which disclosed 4.16 million shares in its latest 13F filing.

Disclosure: none