Is Castlight Health Inc (CSLT) A Good Stock To Buy?

Because Castlight Health Inc (NYSE:CSLT) has witnessed bearish sentiment from the smart money, it’s safe to say that there exists a select few hedge funds that decided to sell off their entire stakes last quarter. It’s worth mentioning that Phill Gross and Robert Atchinson’s Adage Capital Management said goodbye to the largest investment of the 700 funds monitored by Insider Monkey, worth about $1.2 million in stock. Mark Broach’s fund, Manatuck Hill Partners, also cut its stock, about $0.8 million worth.

Let’s now review hedge fund activity in other stocks – not necessarily in the same industry as Castlight Health Inc (NYSE:CSLT) but similarly valued. We will take a look at Arena Pharmaceuticals, Inc. (NASDAQ:ARNA), Landauer, Inc. (NYSE:LDR), Advaxis, Inc. (NASDAQ:ADXS), and China Yuchai International Limited (NYSE:CYD). This group of stocks’ market caps resemble CSLT’s market cap.

As you can see these stocks had an average of 9 hedge funds with bullish positions and the average amount invested in these stocks was $65 million. That figure was $20 million in CSLT’s case. Advaxis, Inc. (NASDAQ:ADXS) is the most popular stock in this table. On the other hand, China Yuchai International Limited (NYSE:CYD) is the least popular one with only 6 bullish hedge fund positions. Castlight Health Inc (NYSE:CSLT) 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 ADXS might be a better candidate to consider taking a long position in.