Is PHI Inc. (PHIIK) A Good Stock To Buy?

Of course not everyone in the hedge fund community is bullish about the stock. There are a select few hedgies who sold off their entire stakes by the end of the third quarter. At the top of the heap, Michael Doheny’s Freshford Capital Management sold off the largest investment of the “upper crust” of funds watched by Insider Monkey, worth an estimated $3.6 million in stock, and Peter Algert and Kevin Coldiron’s Algert Coldiron Investors was right behind this move, as the fund sold off a small position of about $0.3 million worth.

Let’s go over hedge fund activity in other stocks – not necessarily in the same industry as PHI Inc. (NASDAQ:PHIIK) but similarly valued. We will take a look at Collegium Pharmaceutical Inc (NASDAQ:COLL), IntelSat SA (NYSE:I), Advaxis, Inc. (NASDAQ:ADXS), and Digi International Inc. (NASDAQ:DGII). This group of stocks’ market caps resemble PHIIK’s market cap.

As you can see these stocks had an average of 13.5 hedge funds with bullish positions and the average amount invested in these stocks was $92 million. That figure was $77 million in PHIIK’s case. IntelSat SA (NYSE:I) is the most popular stock in this table. On the other hand Collegium Pharmaceutical Inc (NASDAQ:COLL) is the least popular one with only 10 bullish hedge fund positions. Compared to these stocks PHI Inc. (NASDAQ:PHIIK) is even less popular than COLL. Considering that hedge funds aren’t fond of this stock in relation to other companies analyzed in this article, it may be a good idea to analyze it in detail and understand why the smart money isn’t behind this stock. This isn’t necessarily bad news. Although it is possible that hedge funds may think the stock is overpriced and view the stock as a short candidate, they may not be very familiar with the bullish thesis. In either case more research is warranted.