Is Oncobiologics Inc (ONS) A Good Stock To Buy According To Hedge Funds?

Judging by the fact that Oncobiologics Inc (NASDAQ:ONS) has experienced declining sentiment from the smart money, it’s safe to say that there was a specific group of fund managers who were dropping their full holdings last quarter. Interestingly, Sander Gerber’s Hudson Bay Capital Management cut the biggest stake of all the investors followed by Insider Monkey, worth about $0.2 million in stock, and Sander Gerber’s Hudson Bay Capital Management was right behind this move, as the fund dumped about $0 million worth of shares.

Let’s now take a look at hedge fund activity in other stocks – not necessarily in the same industry as Oncobiologics Inc (NASDAQ:ONS) but similarly valued. We will take a look at magicJack VocalTec Ltd (NASDAQ:CALL), Ashford Inc (NYSEMKT:AINC), Five Star Quality Care, Inc. (NYSE:FVE), and Eiger Biopharmaceuticals Inc (NASDAQ:EIGR). This group of stocks’ market valuations are similar to ONS’s market valuation.

As you can see these stocks had an average of 5.75 hedge funds with bullish positions and the average amount invested in these stocks was $11 million. That figure was $28 million in ONS’s case. Five Star Quality Care, Inc. (NYSE:FVE) is the most popular stock in this table. On the other hand Ashford Inc (NYSEMKT:AINC) is the least popular one with only 4 bullish hedge fund positions. Oncobiologics Inc (NASDAQ:ONS) 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 FVE might be a better candidate to consider taking a long position in.