Is NeoGenomics, Inc. (NEO) A Good Stock To Buy?

Since NeoGenomics, Inc. (NASDAQ:NEO) has witnessed falling interest from the aggregate hedge fund industry, logic holds that there was a specific group of hedgies that elected to cut their full holdings heading into Q4. Intriguingly, Mark Coe’s Coe Capital Management got rid of the largest position of the 700 funds monitored by Insider Monkey, comprising an estimated $0.5 million in stock. D. E. Shaw’s fund, D E Shaw, also dumped its stock, about $0.2 million worth.

Let’s go over hedge fund activity in other stocks – not necessarily in the same industry as NeoGenomics, Inc. (NASDAQ:NEO) but similarly valued. We will take a look at Nantkwest Inc (NASDAQ:NK), AngioDynamics, Inc. (NASDAQ:ANGO), Cerus Corporation (NASDAQ:CERS), and Thermon Group Holdings Inc (NYSE:THR). This group of stocks’ market valuations match NEO’s market valuation.

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 $74 million. That figure was $29 million in NEO’s case. AngioDynamics, Inc. (NASDAQ:ANGO) is the most popular stock in this table. On the other hand Thermon Group Holdings Inc (NYSE:THR) is the least popular one with only 4 bullish hedge fund positions. NeoGenomics, Inc. (NASDAQ:NEO) is not the most popular stock in this group but hedge fund interest is still above average. This is a slightly positive signal but we’d rather spend our time researching stocks that hedge funds are piling on. In this regard ANGO might be a better candidate to consider taking a long position in.

Disclosure: None