Is GenVec, Inc. (GNVC) A Good Stock To Buy?

We view hedge fund activity in the stock unfavorable, but in this case there was only a single hedge fund selling its entire position: Citadel Investment Group. 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 here because none of the 700+ hedge funds tracked by Insider Monkey identified GenVec, Inc. (NASDAQ:GNVC) as a viable investment and initiated a position in the stock.

Let’s check out hedge fund activity in other stocks similar to GenVec, Inc. (NASDAQ:GNVC). We will take a look at Novacopper Inc (NYSEMKT:NCQ), LiqTech International Inc (NYSEMKT:LIQT), Nuverra Environmental Solutions Inc (NYSE:NES), and Penn Virginia Corporation (NYSE:PVA). This group of stocks’ market valuations match GenVec, Inc. (NASDAQ:GNVC)’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 $5 million. That figure was $9 million in GenVec, Inc. (NASDAQ:GNVC)’s case. Penn Virginia Corporation (NYSE:PVA) is the most popular stock in this table. On the other hand, LiqTech International Inc (NYSEMKT:LIQT) is the least popular one with only 4 bullish hedge fund positions. GenVec, Inc. (NASDAQ:GNVC) 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, Penn Virginia Corporation (NYSE:PVA) might be a better candidate to consider a long position.