Is Jamba, Inc. (JMBA) A Good Stock To Buy?

Judging by the fact that Jamba, Inc. (NASDAQ:JMBA) has faced declining sentiment from the smart money, logic holds that there exists a select few money managers that decided to sell off their positions entirely last quarter. Interestingly, Jonathan Lennon’s Pleasant Lake Partners dropped the largest position of all the hedgies monitored by Insider Monkey, comprising close to $0.9 million in stock, and Israel Englander of Millennium Management was right behind this move, as the fund cut about $0.4 million worth of shares. These moves are interesting, as total hedge fund interest dropped by 3 funds last quarter.

Let’s check out hedge fund activity in other stocks similar to Jamba, Inc. (NASDAQ:JMBA). We will take a look at InVitae Corp (NYSE:NVTA), Garrison Capital Inc (NASDAQ:GARS), Heritage-Crystal Clean, Inc. (NASDAQ:HCCI), and Proteon Therapeutics Inc (NASDAQ:PRTO). This group of stocks’ market values match JMBA’s market value.

As you can see these stocks had an average of 5.5 hedge funds with bullish positions and the average amount invested in these stocks was $39 million, which is below the $64 million that hedge funds have collectively amassed in JMBA. InVitae Corp (NYSE:NVTA) is the most popular stock in this table, while Heritage-Crystal Clean, Inc. (NASDAQ:HCCI) is the least popular one with only 4 bullish hedge fund positions. Jamba, Inc. (NASDAQ:JMBA) 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 NVTA might be a better candidate to consider a long position.