Is Depomed Inc (DEPO) A Good Stock To Buy?

Now that we’ve mentioned the most bullish investors, let’s also take a look at some funds that cut their entire stakes in the stock during the third quarter. It’s worth mentioning that Mitchell Blutt’s Consonance Capital Management cut the biggest investment of the “upper crust” of funds watched by Insider Monkey, valued at an estimated $44.6 million in stock, and Israel Englander’s Millennium Management was right behind this move, as the fund sold off about $4 million worth of shares.

Let’s now review hedge fund activity in other stocks similar to Depomed Inc (NASDAQ:DEPO). These stocks are EXACT Sciences Corporation (NASDAQ:EXAS), Popeyes Louisiana Kitchen Inc (NASDAQ:PLKI), M.D.C. Holdings, Inc. (NYSE:MDC), and Stratasys, Ltd. (NASDAQ:SSYS). All of these stocks’ market caps are closest to DEPO’s market cap.

As you can see these stocks had an average of 18 hedge funds with bullish positions and the average amount invested in these stocks was $136 million. That figure was $411 million in DEPO’s case. EXACT Sciences Corporation (NASDAQ:EXAS) is the most popular stock in this table. On the other hand M.D.C. Holdings, Inc. (NYSE:MDC) is the least popular one with only 11 bullish hedge fund positions. Depomed Inc (NASDAQ:DEPO) 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 EXAS might be a better candidate to consider taking a long position in.

Disclosure: None