Is Aratana Therapeutics Inc (PETX) A Good Stock To Buy?

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As one would reasonably expect, key money managers have jumped into Aratana Therapeutics Inc (NASDAQ:PETX) headfirst. D E Shaw, founded by David E. Shaw, created the most valuable position in Aratana Therapeutics Inc (NASDAQ:PETX). Millennium Management also made a $2.5 million investment in the stock during the quarter. The other funds with brand new PETX positions are Hutchin Hill Capital, Paul Marshall and Ian Wace’s Marshall Wace LLP, and Cliff Asness’ AQR Capital Management.

Let’s check out hedge fund activity in other stocks – not necessarily in the same industry as Aratana Therapeutics Inc (NASDAQ:PETX) but similarly valued. We will take a look at United Community Financial Corp (NASDAQ:UCFC), Kadmon Holdings Inc (NYSE:KDMN), Spartan Motors Inc (NASDAQ:SPAR), and Jive Software Inc (NASDAQ:JIVE). This group of stocks’ market caps resemble PETX’s market cap.

Ticker No of HFs with positions Total Value of HF Positions (x1000) Change in HF Position
UCFC 8 33765 0
KDMN 11 96607 11
SPAR 14 49536 1
JIVE 13 48850 -2

As you can see these stocks had an average of 12 hedge funds with bullish positions and the average amount invested in these stocks was $57 million. That figure was $42 million in PETX’s case. Spartan Motors Inc (NASDAQ:SPAR) is the most popular stock in this table. On the other hand United Community Financial Corp (NASDAQ:UCFC) is the least popular one with only 8 bullish hedge fund positions. Compared to these stocks Aratana Therapeutics Inc (NASDAQ:PETX) is more popular among hedge funds. Considering that hedge funds are fond of this stock in relation to its market cap peers, it may be a good idea to analyze it in detail and potentially include it in your portfolio.

Disclosure: None

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