Is Boingo Wireless Inc (WIFI) A Good Stock To Buy?

Seeing as Boingo Wireless Inc (NASDAQ:WIFI) has faced a decline in interest from the aggregate hedge fund industry, logic holds that there was a specific group of hedgies that elected to cut their full holdings heading into Q4. At the top of the heap, Adam Wright and Gary Kohler’s Blue Clay Capital cashed in the biggest investment of the 700 funds followed by Insider Monkey, valued at close to $0.6 million in stock, and Michael M. Rothenberg’s Moab Capital Partners was right behind this move, as the fund cut about $0.4 million worth of shares.

Let’s check out hedge fund activity in other stocks – not necessarily in the same industry as Boingo Wireless Inc (NASDAQ:WIFI) but similarly valued. We will take a look at Culp, Inc. (NYSE:CFI), Del Frisco’s Restaurant Group Inc (NASDAQ:DFRG), Sinovac Biotech Ltd. (NASDAQ:SVA), and Straight Path Communications Inc (NYSEMKT:STRP). All of these stocks’ market caps match WIFI’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 $40 million. That figure was $66 million in WIFI’s case. Del Frisco’s Restaurant Group Inc (NASDAQ:DFRG) is the most popular stock in this table. On the other hand Sinovac Biotech Ltd. (NASDAQ:SVA) is the least popular one with only 6 bullish hedge fund positions. Boingo Wireless Inc (NASDAQ:WIFI) is not the most popular stock in this group but hedge fund interest is still above average. This is a slightly positive signal but we’d rather spend our time researching stocks that hedge funds are piling on. In this regard DFRG might be a better candidate to consider taking a long position in.

Disclosure: None