Is Zagg Inc (ZAGG) Going to Burn These Hedge Funds?

We already know that not all hedge funds are bullish on the stock and some hedge funds actually dumped their positions entirely. At the top of the heap, David Brown’s Hawk Ridge Management dumped the largest investment of the 700 funds tracked by Insider Monkey, comprising close to $2 million in stock, and Israel Englander’s Millennium Management was right behind this move, as the fund dumped about $0.6 million worth of Zagg Inc (NASDAQ:ZAGG) shares.

Let’s also examine hedge fund activity in other stocks similar to Zagg Inc (NASDAQ:ZAGG). We will take a look at Abraxas Petroleum Corp. (NASDAQ:AXAS), Neff Corp (NYSE:NEFF), Park City Group, Inc. (NASDAQ:PCYG), and Concert Pharmaceuticals Inc (NASDAQ:CNCE). All of these stocks’ market caps are closest to ZAGG’s market cap.

As you can see these stocks had an average of 8 hedge funds with bullish positions and the average amount invested in these stocks was $19 million. That figure was $11 million in ZAGG’s case. Concert Pharmaceuticals Inc (NASDAQ:CNCE) is the most popular stock in this table. On the other hand Neff Corp (NYSE:NEFF) is the least popular one with only 5 bullish hedge fund positions. Zagg Inc (NASDAQ:ZAGG) 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 CNCE might be a better candidate to consider taking a long position in.

Disclosure: None