How Limelight Networks, Inc. (LLNW) Stacks Up Against Its Peers

We view hedge fund activity in the stock as unfavorable, but in this case there was only a single hedge fund selling its entire position: Becker Drapkin Management. One hedge fund selling its entire position doesn’t always imply a bearish intent. Theoretically a hedge fund may decide to sell a promising position in order to invest the proceeds in a more promising idea. However, we don’t think this is the case in this case because none of the 700+ hedge funds tracked by Insider Monkey identified LLNW as a viable investment and initiated a position in the stock.

Let’s check out hedge fund activity in other stocks – not necessarily in the same industry as Limelight Networks, Inc. (NASDAQ:LLNW) but similarly valued. These stocks are MiX Telematics Ltd – ADR (NYSE:MIXT), Charter Financial Corp (NASDAQ:CHFN), Transenterix Inc (NYSEMKT:TRXC), and Uniqure NV (NASDAQ:QURE). This group of stocks’ market caps are closest to LLNW’s market cap.

As you can see these stocks had an average of 7 hedge funds with bullish positions and the average amount invested in these stocks was $21 million. That figure was $11 million in LLNW’s case. Uniqure NV (NASDAQ:QURE) is the most popular stock in this table. On the other hand MiX Telematics Ltd – ADR (NYSE:MIXT) is the least popular one with only 3 bullish hedge fund positions. Limelight Networks, Inc. (NASDAQ:LLNW) is not the most popular stock in this group but hedge fund interest is still above average. This is a slightly positive signal but we’d rather spend our time researching stocks that hedge funds are piling on. In this regard QURE might be a better candidate to consider taking a long position in.

Disclosure: None