Is Invivo Therapeutics Holdings Corp (NVIV) A Good Stock To Buy?

With a general bullishness amongst the heavyweights, specific money managers have jumped into Invivo Therapeutics Holdings Corp (NASDAQ:NVIV) headfirst. Sabby Capital, managed by Hal Mintz, established the largest call position in Invivo Therapeutics Holdings Corp (NASDAQ:NVIV). Sabby Capital had $2.2 million invested in the company at the end of the quarter. Israel Englander’s Millennium Management also initiated a $0.2 million position during the quarter. The other funds with new positions in the stock are Matthew Hulsizer’s PEAK6 Capital Management and Ken Griffin’s Citadel Investment Group.

Let’s go over hedge fund activity in other stocks similar to Invivo Therapeutics Holdings Corp (NASDAQ:NVIV). We will take a look at Vectrus Inc (NYSE:VEC), eHealth, Inc. (NASDAQ:EHTH), OvaScience Inc (NASDAQ:OVAS), and Bel Fuse, Inc. (NASDAQ:BELFB). This group of stocks’ market caps match NVIV’s market cap.

As you can see these stocks had an average of 12 hedge funds with bullish positions and the average amount invested in these stocks was $40 million. That figure was just $3 million in NVIV’s case. eHealth, Inc. (NASDAQ:EHTH) is the most popular stock in this table. On the other hand Vectrus Inc (NYSE:VEC) is the least popular one with only 10 bullish hedge fund positions. Compared to these stocks Invivo Therapeutics Holdings Corp (NASDAQ:NVIV) is even less popular than VEC. 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 required.