Is Agile Therapeutics Inc (AGRX) A Good Stock To Buy?

We view hedge fund activity in the stock unfavorable, but in this case there was only a single hedge fund selling its entire position: Renaissance Technologies. 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 AGRX 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 Agile Therapeutics Inc (NASDAQ:AGRX) but similarly valued. We will take a look at Century Casinos, Inc. (NASDAQ:CNTY), J Alexander’s Holdings Inc (NYSE:JAX), Harmony Merger Corp (NASDAQ:HRMNU), and Resource America Inc (NASDAQ:REXI). All of these stocks’ market caps match AGRX’s market cap.

As you can see these stocks had an average of 10 hedge funds with bullish positions and the average amount invested in these stocks was $25 million, which is lower than the aggregate value of the funds’ holdings in Agile Therapeutics. J Alexander’s Holdings Inc (NYSE:JAX) is the most popular stock in this table, while Harmony Merger Corp (NASDAQ:HRMNU) is the least popular one with only 6 bullish hedge fund positions. Agile Therapeutics Inc (NASDAQ:AGRX) 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 JAX might be a better candidate to consider a long position.