Is Attunity Ltd (ATTU) 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: Two Sigma Advisors. 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 ATTU as a viable investment and initiated a position in the stock.

Let’s now review hedge fund activity in other stocks similar to Attunity Ltd (NASDAQ:ATTU). We will take a look at Aurinia Pharmaceuticals Inc (NASDAQ:AUPH), Gridsum Holding Inc – ADR (NASDAQ:GSUM), QLT Inc. (USA) (NASDAQ:QLTI), and Papa Murphy’s Holdings Inc (NASDAQ:FRSH). This group of stocks’ market valuations resemble ATTU’s market valuation.

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 $22 million. That figure was $13 million in ATTU’s case. Gridsum Holding Inc – ADR (NASDAQ:GSUM) is the most popular stock in this table. On the other hand Aurinia Pharmaceuticals Inc (NASDAQ:AUPH) is the least popular one with only 3 bullish hedge fund positions. Attunity Ltd (NASDAQ:ATTU) 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 GSUM might be a better candidate to consider taking a long position in.

Disclosure: None