Here is What Hedge Funds Think About iRobot Corporation (IRBT)

Since iRobot Corporation (NASDAQ:IRBT) has experienced falling interest from hedge fund managers, it’s easy to see that there were a few hedgies who sold off their positions entirely in the third quarter. It’s worth mentioning that D E Shaw sold off the biggest position of the 700 funds monitored by Insider Monkey, totaling an estimated $2.5 million in CALL options. Dmitry Balyasny’s fund, Balyasny Asset Management, also dumped its CALL options, about $1.9 million worth of options. These moves are interesting, as aggregate hedge fund interest fell by 3 funds in the third quarter.

Let’s now review hedge fund activity in other stocks similar to iRobot Corporation (NASDAQ:IRBT). These stocks are National HealthCare Corporation (NYSEMKT:NHC), Monotype Imaging Holdings Inc. (NASDAQ:TYPE), Denbury Resources Inc. (NYSE:DNR), and Zafgen Inc (NASDAQ:ZFGN). All of these stocks’ market caps are closest to iRobot Corporation (NASDAQ:IRBT)’s market cap.

As you can see, these stocks had an average of 14 hedge funds with bullish positions and the average amount invested in these stocks was $66 million. That figure was $68 million in iRobot Corporation (NASDAQ:IRBT)’s case. Denbury Resources Inc. (NYSE:DNR) is the most popular stock in this table. On the other hand, National HealthCare Corporation (NYSEMKT:NHC) is the least popular one with only 8 bullish hedge fund positions. iRobot Corporation (NASDAQ:IRBT) 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, Denbury Resources Inc. (NYSE:DNR) might be a better candidate to consider a long position.