Is Cutera, Inc. (CUTR) A Good Stock To Buy?

We view hedge fund activity in the stock as unfavorable, but in this case there was only a single hedge fund selling its entire position: Millennium Management. 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 only one of the 800+ hedge funds tracked by Insider Monkey identified as a viable investment and initiated a position in the stock (that fund was Craig Drill Capital).

Let’s now review hedge fund activity in other stocks similar to Cutera, Inc. (NASDAQ:CUTR). These stocks are ProQR Therapeutics NV (NASDAQ:PRQR), Lawson Products, Inc. (NASDAQ:LAWS), Black Diamond Inc (NASDAQ:BDE), and Proteon Therapeutics Inc (NASDAQ:PRTO). This group of stocks’ market caps are closest to CUTR’s market cap.

As you can see these stocks had an average of 6 hedge funds with bullish positions and the average amount invested in these stocks was $21 million. That figure was $39 million in CUTR’s case. Black Diamond Inc (NASDAQ:BDE) is the most popular stock in this table. On the other hand Lawson Products, Inc. (NASDAQ:LAWS) is the least popular one with only 3 bullish hedge fund positions. Compared to these stocks Cutera, Inc. (NASDAQ:CUTR) 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