Is Acacia Communications, Inc. (ACIA) a Good Stock to Buy?

Now, specific money managers were breaking ground themselves. Coatue Management created the most valuable position in Acacia Communications, Inc. (NASDAQ:ACIA) at the end of the quarter. Folger Hill Asset Management also made a $4.3 million investment in the stock during the quarter. The other funds with new positions in the stock are Ken Griffin’s Citadel Investment Group and Neil Chriss’ Hutchin Hill Capital.

Let’s now review hedge fund activity in other stocks similar to Acacia Communications, Inc. (NASDAQ:ACIA). We will take a look at Trinity Industries, Inc. (NYSE:TRN), The Hain Celestial Group, Inc. (NASDAQ:HAIN), Crane Co. (NYSE:CR), and ViaSat, Inc. (NASDAQ:VSAT). This group of stocks’ market values are closest to ACIA’s market value.

As you can see these stocks had an average of 25 hedge funds with bullish positions and the average amount invested in these stocks was $779 million. That figure was $50 million in ACIA’s case. The Hain Celestial Group, Inc. (NASDAQ:HAIN) is the most popular stock in this table. On the other hand ViaSat, Inc. (NASDAQ:VSAT) is the least popular one with only 21 bullish hedge fund positions. Compared to these stocks Acacia Communications, Inc. (NASDAQ:ACIA) is even less popular than VSAT. 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.

Disclosure: None