Is K2M Group Holdings Inc (KTWO) A Good Stock To Buy?

Now that we’ve mentioned the most bullish investors, let’s also take a look at some funds that sold off their entire stakes in the stock during the third quarter. It’s worth mentioning that Michael Murphy and Daniel Donoghue’s Discovery Group sold off the biggest stake of all the investors studied by Insider Monkey, valued at an estimated $5 million in stock, and John Paulson’s Paulson & Co was right behind this move, as the fund sold off about $0.7 million worth of shares.

Let’s also examine hedge fund activity in other stocks similar to K2M Group Holdings Inc (NASDAQ:KTWO). We will take a look at Just Energy Group, Inc. Ordinary Shares (Canada) (NYSE:JE), Viad Corp (NYSE:VVI), National Western Life Insurance Company (NASDAQ:NWLI), and Tobira Therapeutics Inc (NASDAQ:TBRA). This group of stocks’ market caps are similar to KTWO’s market cap.

As you can see these stocks had an average of 11 hedge funds with bullish positions and the average amount invested in these stocks was $133 million. That figure was $50 million in KTWO’s case. Tobira Therapeutics Inc (NASDAQ:TBRA) is the most popular stock in this table. On the other hand National Western Life Insurance Company (NASDAQ:NWLI) is the least popular one with only 7 bullish hedge fund positions. K2M Group Holdings Inc (NASDAQ:KTWO) 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 TBRA might be a better candidate to consider taking a long position in.

Disclosure: None