Is pdvWireless Inc (PDVW) A Good Stock To Buy?

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Due to the fact that pdvWireless Inc (NASDAQ:PDVW) has witnessed bearish sentiment from the aggregate hedge fund industry, it’s safe to say that there is a sect of fund managers that elected to cut their full holdings in the third quarter. Intriguingly, Edward A. Mule’s Silver Point Capital said goodbye to the biggest position of all the hedgies watched by Insider Monkey, comprising about $8.7 million in stock, and Marc Majzner of Clearline Capital was right behind this move, as the fund said goodbye to about $4.2 million worth. These transactions are important to note, as aggregate hedge fund interest was cut by 4 funds in the third quarter.

Let’s now review hedge fund activity in other stocks similar to pdvWireless Inc (NASDAQ:PDVW). We will take a look at Kadant Inc. (NYSE:KAI), Winmark Corporation (NASDAQ:WINA), Golden Ocean Group Ltd (NASDAQ:GOGL), and La Jolla Pharmaceutical Company (NASDAQ:LJPC). All of these stocks’ market caps resemble pdvWireless Inc (NASDAQ:PDVW)’s market cap.

Ticker No of HFs with positions Total Value of HF Positions (x1000) Change in HF Position
KAI 15 28066 2
WINA 6 63289 -2
GOGL 6 7382 0
LJPC 14 193176 6

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 $73 million. That figure was $190 million in pdvWireless Inc (NASDAQ:PDVW)’s case. Kadant Inc. (NYSE:KAI) is the most popular stock in this table. On the other hand, Winmark Corporation (NASDAQ:WINA) is the least popular one with only 6 bullish hedge fund positions. Even though it is not the least popular stock among the ones in this group, pdwWierless Inc (NASDAQ: PDVW) has not attracted much attention from hedge funds. This may indicate that there are better choices for investments, such as Kadant Inc. (NYSE:KAI), in this particular group.

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