Is Inventure Foods Inc (SNAK) A Good Stock To Buy?

Because Inventure Foods Inc (NASDAQ:SNAK) has witnessed a declining sentiment from the smart money, it’s easy to see that there lies a certain “tier” of hedge funds who sold off their full holdings heading into Q4. Intriguingly, Steven Boyd’s Armistice Capital dropped the biggest stake of the 700 funds tracked by Insider Monkey, totaling about $6.3 million in stock. Charles Paquelet’s fund, Skylands Capital, also said goodbye to its stock, about $1.6 million worth of shares. These transactions are important to note, as total hedge fund interest dropped by 4 funds heading into Q4.

Let’s go over hedge fund activity in other stocks similar to Inventure Foods Inc (NASDAQ:SNAK). These stocks are EMCORE Corporation (NASDAQ:EMKR), ProShares UltraShort Nasdaq Biotech (NASDAQ:BIS), Monroe Capital Corp (NASDAQ:MRCC), and Aspen Aerogels Inc (NYSE:ASPN). This group of stocks’ market caps are similar to Inventure Foods Inc (NASDAQ:SNAK)’s market cap.

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 $19 million. That figure was $12 million in Inventure Foods Inc (NASDAQ:SNAK)’s case. EMCORE Corporation (NASDAQ:EMKR) is the most popular stock in this table. On the other hand, ProShares UltraShort Nasdaq Biotech (NASDAQ:BIS) is the least popular one with only 4 bullish hedge fund positions. Inventure Foods Inc (NASDAQ:SNAK) 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, EMCORE Corporation (NASDAQ:EMKR) might be a better candidate to consider a long position.