Is Maxwell Technologies Inc. (MXWL) A Good Stock To Buy?

Due to the fact that Maxwell Technologies Inc. (NASDAQ:MXWL) has experienced a declining sentiment from hedge fund managers, it’s easy to see that there lies a certain “tier” of money managers who sold off their entire stakes by the end of the third quarter. At the top of the heap, Bernard Selz’s Selz Capital cut the largest stake of the “upper crust” of funds followed by Insider Monkey, worth an estimated $1.7 million in stock, and Ben Levine, Andrew Manuel and Stefan Renold’s LMR Partners was right behind this move, as the fund dropped about $0.2 million worth of shares.

Let’s also examine hedge fund activity in other stocks similar to Maxwell Technologies Inc. (NASDAQ:MXWL). We will take a look at HORSEHEAD HOLDING CORP. (NASDAQ:ZINC), Hurco Companies, Inc. (NASDAQ:HURC), Bravo Brio Restaurant Group, Inc. (NASDAQ:BBRG), and VIVUS, Inc. (NASDAQ:VVUS). This group of stocks’ market valuations resemble MXWL’s market valuation.

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 $30 million, compared to $18 million in MXWL’s case. Bravo Brio Restaurant Group, Inc. (NASDAQ:BBRG) is the most popular stock in this table. On the other hand Hurco Companies, Inc. (NASDAQ:HURC) is the least popular one with only 7 bullish hedge fund positions. Maxwell Technologies Inc. (NASDAQ:MXWL) 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 BBRG might be a better candidate to consider a long position.