Is Eastern Virginia Bankshares, Inc. (EVBS) Going to Burn These Hedge Funds?

As one would reasonably expect, some big names have been driving this bullishness. Millennium Management established the largest position in Eastern Virginia Bankshares, Inc. (NASDAQ:EVBS). Millennium Management had $0.1 million invested in the company at the end of the quarter.

Let’s check out hedge fund activity in other stocks similar to Eastern Virginia Bankshares, Inc. (NASDAQ:EVBS). These stocks are Conatus Pharmaceuticals Inc (NASDAQ:CNAT), Alliqua Biomedical Inc (NASDAQ:ALQA), YuMe Inc (NYSE:YUME), and Fuel Systems Solutions, Inc. (NASDAQ:FSYS). This group of stocks’ market valuations are closest to Eastern Virginia Bankshares, Inc. (NASDAQ:EVBS)’s market valuation.

As you can see, these stocks had an average of 7 hedge funds with bullish positions and the average amount invested in these stocks was $12 million. That figure was $9 million in Eastern Virginia Bankshares, Inc. (NASDAQ:EVBS)’s case. Conatus Pharmaceuticals Inc (NASDAQ:CNAT) is the most popular stock in this table. On the other hand, YuMe Inc (NYSE:YUME) is the least popular one with only 5 bullish hedge fund positions. Compared to these stocks, Eastern Virginia Bankshares, Inc. (NASDAQ:EVBS) is even less popular than YuMe Inc (NYSE:YUME). Considering that hedge funds aren’t fond of this stock in relation to other companies analyzed in this article, it may be a good idea to analyze it in detail and understand why the smart money isn’t behind this stock. This isn’t necessarily bad news. Although it is possible that hedge funds may think the stock is overpriced and view the stock as a short candidate, they may not be very familiar with the bullish thesis. In either case, more research is warranted.