Is Collegium Pharmaceutical Inc (COLL) A Good Stock To Buy?

Because Collegium Pharmaceutical Inc (NASDAQ:COLL) has faced falling interest from the smart money, logic holds that there lies a certain “tier” of money managers that slashed their positions entirely in the third quarter. At the top of the heap, Oleg Nodelman’s EcoR1 Capital cashed in the largest investment of all the hedgies tracked by Insider Monkey, comprising close to $3.3 million in stock, and Hal Mintz’s Sabby Capital was right behind this move, as the fund said goodbye to about $1.2 million worth of shares.

Let’s check out hedge fund activity in other stocks – not necessarily in the same industry as Collegium Pharmaceutical Inc (NASDAQ:COLL) but similarly valued. These stocks are 21Vianet Group Inc (NASDAQ:VNET), Del Taco Restaurants Inc (NASDAQ:TACO), KEYW Holding Corp. (NASDAQ:KEYW), and Intersect ENT Inc (NASDAQ:XENT). This group of stocks’ market caps resemble COLL’s market cap.

As you can see these stocks had an average of 12 funds with bullish positions and the average amount invested in these stocks was $41 million, which is lower than the $140 million in COLL’s case. Del Taco Restaurants Inc (NASDAQ:TACO) is the most popular stock in this table. On the other hand 21Vianet Group Inc (NASDAQ:VNET) is the least popular one with only 9 bullish hedge fund positions. Collegium Pharmaceutical Inc (NASDAQ:COLL) 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 Del Taco Restaurants Inc (NASDAQ:TACO) might be a better candidate to consider taking a long position in.

Disclosure: none