Is Accelerate Diagnostics Inc (AXDX) a Good Stock to Buy?

Page 2 of 2

Since Accelerate Diagnostics Inc (NASDAQ:AXDX) has gone through a decline in interest from the smart money, logic holds that there were a few hedgies that decided to sell off their entire stakes heading into Q4. Intriguingly, Anand Parekh’s Alyeska Investment Group sold off the biggest position of all the hedgies tracked by Insider Monkey, valued at an estimated $2.3 million in stock. Israel Englander’s fund, Millennium Management, one of the 10 largest hedge funds in the world, also dumped its stock, about $0.4 million worth.

Let’s check out hedge fund activity in other stocks similar to Accelerate Diagnostics Inc (NASDAQ:AXDX). We will take a look at MSG Networks Inc (NYSE:MSGN), Hub Group Inc (NASDAQ:HUBG), Moelis & Co (NYSE:MC), and Synergy Resources Corp (NYSEAMEX:SYRG). This group of stocks’ market valuations are closest to AXDX’s market valuation.

Ticker No of HFs with positions Total Value of HF Positions (x1000) Change in HF Position
MSGN 24 324337 3
HUBG 21 286593 4
MC 10 71733 2
SYRG 12 270087 -6

As you can see these stocks had an average of 17 hedge funds with bullish positions and the average amount invested in these stocks was $238 million. That figure was $100 million in AXDX’s case. MSG Networks Inc (NYSE:MSGN) is the most popular stock in this table. On the other hand Moelis & Co (NYSE:MC) is the least popular one with only 10 bullish hedge fund positions. Compared to these stocks Accelerate Diagnostics Inc (NASDAQ:AXDX) is even less popular than MC. 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


Page 2 of 2