NxStage Medical, Inc. (NXTM): Are Hedge Funds Right About This Stock?

Because NxStage Medical, Inc. (NASDAQ:NXTM) has faced bearish sentiment from the smart money, it’s easy to see that there exists a select few hedgies that elected to cut their positions entirely in the third quarter. Intriguingly, Steve Cohen’s Point72 Asset Management dumped the largest position of the 700 funds watched by Insider Monkey, valued at an estimated $8.6 million in stock. Charles Clough’s fund, Clough Capital Partners, also sold off its stock, about $2.7 million worth. These moves are important to note, as aggregate hedge fund interest dropped by 10 funds in the third quarter.

Let’s also examine hedge fund activity in other stocks similar to NxStage Medical, Inc. (NASDAQ:NXTM). We will take a look at Banner Corporation (NASDAQ:BANR), Cooper-Standard Holdings Inc (NYSE:CPS), Wright Medical Group NV (NASDAQ:WMGI), and Enerplus Corp (USA) (NYSE:ERF). This group of stocks’ market values match NXTM’s market value.

As you can see these stocks had an average of 14 hedge funds with bullish positions and the average amount invested in these stocks was $141 million. That figure was $210 million in NXTM’s case. Banner Corporation (NASDAQ:BANR) is the most popular stock in this table, while the least popular one is Enerplus Corp (USA) (NYSE:ERF). In comparison, NxStage Medical, Inc. (NASDAQ:NXTM), with 20 bullish hedge fund positions, is more popular among hedge funds. Considering that hedge funds are fond of this stock in relation to its market cap peers, it may be a good idea to analyze it in detail and potentially include it in your portfolio.