Should You Avoid Aeglea Bio Therapeutics Inc (AGLE)?

We view hedge fund activity in the stock unfavorable, but in this case there was only a single hedge fund selling its entire position: Citadel Investment Group. One hedge fund selling its entire position doesn’t always imply a bearish intent. Theoretically a hedge fund may decide to sell a promising position in order to invest the proceeds in a more promising idea. However, we don’t think this is the case in this case because none of the 700+ hedge funds tracked by Insider Monkey identified AGLE as a viable investment and initiated a position in the stock.

Let’s now take a look at hedge fund activity in other stocks – not necessarily in the same industry as Aeglea Bio Therapeutics Inc (NASDAQ:AGLE) but similarly valued. These stocks are Datawatch Corporation (NASDAQ:DWCH), Synacor Inc (NASDAQ:SYNC), Aegerion Pharmaceuticals, Inc. (NASDAQ:AEGR), and ModusLink Global Solutions, Inc. (NASDAQ:MLNK). All of these stocks’ market caps are closest to AGLE’s market cap.

As you can see these stocks had an average of six funds with bullish positions and the average amount invested in these stocks was $23 million. That figure was $22 million in AGLE’s case. Aegerion Pharmaceuticals, Inc. (NASDAQ:AEGR) is the most popular stock in this table. On the other hand Synacor Inc (NASDAQ:SYNC) is the least popular one with only four funds having reported long positions. Compared to these stocks Aeglea Bio Therapeutics Inc (NASDAQ:AGLE) 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.

Disclosure: none