Is Aduro BioTech Inc (ADRO) A Good Stock To Buy?

We already know that not all hedge funds are bullish on the stock and some hedge funds actually cashed in their positions entirely. At the top of the heap, Daniel Gold’s QVT Financial cashed in the largest position of the “upper crust” of funds tracked by Insider Monkey, comprising close to $2.2 million in stock. Millennium Management, one of the 10 largest hedge funds in the world, also dumped its stock, about $1.7 million worth.

Let’s go over hedge fund activity in other stocks – not necessarily in the same industry as Aduro BioTech Inc (NASDAQ:ADRO) but similarly valued. These stocks are Veritiv Corp (NYSE:VRTV), Denny’s Corporation (NASDAQ:DENN), Scorpio Tankers Inc. (NYSE:STNG), and TrueCar Inc (NASDAQ:TRUE). This group of stocks’ market caps are similar to ADRO’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 $107 million. That figure was $16 million in ADRO’s case. Scorpio Tankers Inc. (NYSE:STNG) is the most popular stock in this table. On the other hand Veritiv Corp (NYSE:VRTV) is the least popular one with only 12 bullish hedge fund positions. Compared to these stocks Aduro BioTech Inc (NASDAQ:ADRO) is even less popular than VRTV. 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.

Disclosure: None