Is Marketo Inc (MKTO) A Good Stock To Buy?

Seeing as Marketo Inc (NASDAQ:MKTO) has faced a decline in interest from the aggregate hedge fund industry, it’s easy to see that there was a specific group of hedgies that slashed their positions entirely by the end of the third quarter. It’s worth mentioning that Eric Semler’s TCS Capital Management sold off the largest stake of the 700 funds followed by Insider Monkey, totaling an estimated $4.8 million in call options, and Dmitry Balyasny’s Balyasny Asset Management was right behind this move, as the fund dumped about $2.8 million worth of shares. These transactions are interesting, as total hedge fund interest dropped by 2 funds by the end of the third quarter.

Let’s go over hedge fund activity in other stocks – not necessarily in the same industry as Marketo Inc (NASDAQ:MKTO) but similarly valued. These stocks are Examworks Group, Inc. (NYSE:EXAM), Aduro BioTech Inc (NASDAQ:ADRO), Atlantic Tele-Network, Inc. (NASDAQ:ATNI), and Independent Bank Corp (NASDAQ:INDB). This group of stocks’ market caps are closest to MKTO’s market cap.

As you can see these stocks had an average of 10 hedge funds with bullish positions and the average amount invested in these stocks was $58 million, compared to $97 million in MKTO’s case. Examworks Group, Inc. (NYSE:EXAM) is the most popular stock in this table. On the other hand Independent Bank Corp (NASDAQ:INDB) is the least popular one with only 8 bullish hedge fund positions. Compared to these stocks Marketo Inc (NASDAQ:MKTO) is more popular among hedge funds. Considering that hedge funds are fond of this stock in relation to its market cap peers, it may be a good idea to analyze it in detail and potentially include it in your portfolio.