Is Momenta Pharmaceuticals, Inc. (MNTA) A Good Stock To Buy?

Because Momenta Pharmaceuticals, Inc. (NASDAQ:MNTA) has faced declining sentiment from hedge fund managers, we can see that there is a sect of funds who were dropping their full holdings heading into Q4. Intriguingly, Richard Driehaus’ Driehaus Capital dropped the biggest investment of the 700 funds monitored by Insider Monkey, valued at about $4.3 million in stock. Jonathan Lourie and Stuart Fiertz’s fund, Cheyne Capital, also said goodbye to its stock, about $4.3 million worth. These transactions are interesting, as aggregate hedge fund interest dropped by 2 funds heading into Q4.

Let’s now take a look at hedge fund activity in other stocks – not necessarily in the same industry as Momenta Pharmaceuticals, Inc. (NASDAQ:MNTA) but similarly valued. We will take a look at Cubic Corporation (NYSE:CUB), Adeptus Health Inc (NYSE:ADPT), Select Comfort Corp. (NASDAQ:SCSS), and John Bean Technologies Corporation (NYSE:JBT). This group of stocks’ market valuations resemble MNTA’s market valuation.

As you can see these stocks had an average of 21.75 hedge funds with bullish positions and the average amount invested in these stocks was $141 million. That figure was $278 million in MNTA’s case. Adeptus Health Inc (NYSE:ADPT) is the most popular stock in this table. On the other hand Cubic Corporation (NYSE:CUB) is the least popular one with only 16 bullish hedge fund positions. Momenta Pharmaceuticals, Inc. (NASDAQ:MNTA) 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 ADPT might be a better candidate to consider a long position.