Is Eagle Pharmaceuticals Inc (EGRX) Going to Burn These Hedge Funds?

Seeing as Eagle Pharmaceuticals Inc (NASDAQ:EGRX) has faced falling interest from the aggregate hedge fund industry, we can see that there were a few fund managers who sold off their positions entirely in the third quarter. Interestingly, Paul Marshall and Ian Wace’s Marshall Wace LLP cut the biggest stake of the 700 funds tracked by Insider Monkey, totaling close to $3.8 million in stock. Renaissance Technologies, also dumped its stock, about $1.9 million worth.

Let’s check out hedge fund activity in other stocks – not necessarily in the same industry as Eagle Pharmaceuticals Inc (NASDAQ:EGRX) but similarly valued. These stocks are Federal-Mogul Corporation (NASDAQ:FDML), Seres Therapeutics Inc (NASDAQ:MCRB), NuStar GP Holdings, LLC (NYSE:NSH), and SPS Commerce, Inc. (NASDAQ:SPSC). This group of stocks’ market valuations are similar to EGRX’s market valuation.

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 $286 million. That figure was $211 million in EGRX’s case. Federal-Mogul Corporation (NASDAQ:FDML) is the most popular stock in this table. On the other hand SPS Commerce, Inc. (NASDAQ:SPSC) is the least popular one with only 7 bullish hedge fund positions. Compared to these stocks Eagle Pharmaceuticals Inc (NASDAQ:EGRX) 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.