Is Natural Health Trends Corp. (NHTC) A Good Stock To Buy?

Due to the fact that Natural Health Trends Corp. (NASDAQ:NHTC) has witnessed no change in interest from the entirety of the hedge funds we track, we should see if there is a group of fund managers that slashed their entire stakes in the third quarter. Interestingly, Ken Griffin’s Citadel Investment Group sold off the largest position of all the hedgies tracked by Insider Monkey, comprising an estimated $1.2 million in call options, and Neil Chriss’s Hutchin Hill Capital was right behind this move, as the fund said goodbye to about $1 million worth of shares.

Let’s check out hedge fund activity in other stocks – not necessarily in the same industry as Natural Health Trends Corp. (NASDAQ:NHTC) but similarly valued. These stocks are Tuniu Corp (NASDAQ:TOUR), Siliconware Precision Industries (ADR) (NASDAQ:SPIL), Avid Technology, Inc. (NASDAQ:AVID), and Primo Water Corporation (NASDAQ:PRMW). This group of stocks’ market valuations are similar to NHTC’s market valuation.

As you can see these stocks had an average of 12 hedge funds with bullish positions and the average amount invested in these stocks was $49 million. That figure was $40 million in NHTC’s case. Avid Technology, Inc. (NASDAQ:AVID) is the most popular stock in this table. On the other hand Siliconware Precision Industries (ADR) (NASDAQ:SPIL) is the least popular one with only 6 bullish hedge fund positions. Natural Health Trends Corp. (NASDAQ:NHTC) 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 AVID might be a better candidate to consider taking a long position in.

Disclosure: None