Maybe BABY? Here’s What Hedge Funds Think of Natus Medical Inc (BABY)

Judging by the fact that Natus Medical Inc (NASDAQ:BABY) has experienced declining sentiment from the aggregate hedge fund industry, it’s safe to say that there is a sect of hedge funds that decided to sell off their entire stakes in the third quarter. Intriguingly, Millennium Management Subsidiary’s Decade Capital Management said goodbye to the biggest stake of all the hedgies followed by Insider Monkey, totaling about $3.6 million in stock, and Neil Chriss’ Hutchin Hill Capital was right behind this move, as the fund sold off about $1 million worth of shares. These transactions are interesting, as aggregate hedge fund interest fell by 1 fund in the third quarter.

Let’s go over hedge fund activity in other stocks – not necessarily in the same industry as Natus Medical Inc (NASDAQ:BABY) but similarly valued. These stocks are Gogo Inc (NASDAQ:GOGO), Olin Corporation (NYSE:OLN), Shutterfly, Inc. (NASDAQ:SFLY), and Talen Energy Corp (NYSE:TLN). All of these stocks’ market caps are similar to BABY’s market cap.

As you can see these stocks had an average of 25 hedge funds with bullish positions and the average amount invested in these stocks was $289 million. That figure was $136 million in BABY’s case. Olin Corporation (NYSE:OLN) is the most popular stock in this table. On the other hand Gogo Inc (NASDAQ:GOGO) is the least popular one with only 18 bullish hedge fund positions. Natus Medical Inc (NASDAQ:BABY) 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 OLN might be a better candidate to consider a long position in.