Is Theravance Biopharma Inc (TBPH) A Good Stock To Buy?

Because Theravance Biopharma Inc (NASDAQ:TBPH) has encountered a decline in interest from the entirety of the hedge funds we track, it’s easy to see that there is a sect of hedgies that slashed their full holdings by the end of the third quarter. It’s worth mentioning that Michael Burry’s Scion Asset Management dumped the biggest investment of the 700 funds studied by Insider Monkey, worth an estimated $7.4 million in stock, and David Costen Haley’s HBK Investments was right behind this move, as the fund dumped about $0.2 million worth of shares.

Let’s also examine hedge fund activity in other stocks – not necessarily in the same industry as Theravance Biopharma Inc (NASDAQ:TBPH) but similarly valued. These stocks are RingCentral Inc (NYSE:RNG), Plantronics, Inc. (NYSE:PLT), DigitalGlobe Inc (NYSE:DGI), and Trex Company, Inc. (NYSE:TREX). This group of stocks’ market values resemble TBPH’s market value.

As you can see these stocks had an average of 17 hedge funds with bullish positions and the average amount invested in these stocks was $125 million. That figure was $697 million in TBPH’s case. RingCentral Inc (NYSE:RNG) is the most popular stock in this table. On the other hand Trex Company, Inc. (NYSE:TREX) is the least popular one with only 10 bullish hedge fund positions. Theravance Biopharma Inc (NASDAQ:TBPH) 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 RNG might be a better candidate to consider taking a long position in.

Disclosure: None