Is InspireMD Inc (NSPR) Going to Burn These Hedge Funds?

Because InspireMD Inc (NYSEMKT:NSPR) has faced a declining sentiment from the aggregate hedge fund industry, it’s easy to see that there is a sect of hedge funds who sold off their entire stakes in the third quarter. Interestingly, Sio Capital sold off the biggest investment of all the hedgies followed by Insider Monkey, totaling about $0.6 million in stock. Matthew Strobeck’s fund, Birchview Capital, also cut its stock, about $0.2 million worth of shares. These transactions are intriguing to say the least, as aggregate hedge fund interest fell by 1 fund in the third quarter.

Let’s now review hedge fund activity in other stocks similar to InspireMD Inc (NYSEMKT:NSPR). These stocks are Lincoln Educational Services Corporation (NASDAQ:LINC), Forbes Energy Services Ltd. (NASDAQ:FES), MELA Sciences Inc (NASDAQ:MELA), and Wave Systems Corp. (NASDAQ:WAVX). This group of stocks’ market values resemble InspireMD Inc (NYSEMKT:NSPR)’s market value.

As you can see, these stocks had an average of 5 hedge funds with bullish positions and the average amount invested in these stocks was $2 million. That figure was $2 million in InspireMD Inc (NYSEMKT:NSPR)’s case. Lincoln Educational Services Corporation (NASDAQ:LINC) is the most popular stock in this table. On the other hand, Forbes Energy Services Ltd. (NASDAQ:FES) is the least popular one with only 4 bullish hedge fund positions. InspireMD Inc (NYSEMKT:NSPR) is not the most popular stock in this group, but hedge fund interest is still above average. This is a slightly positive signal, but we’d rather spend our time researching stocks that hedge funds are piling on. In this regard, Lincoln Educational Services Corporation (NASDAQ:LINC) might be a better candidate to consider a long position.