Should You Buy Kindred Biosciences Inc (KIN)?

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Earlier we told you that the aggregate hedge fund interest in Kindred Biosciences Inc (NASDAQ:KIN) was unchanged and we view this as a negative development. Even though there weren’t any hedge funds dumping their holdings during the third quarter, there weren’t any hedge funds initiating brand new positions. This indicates that hedge funds, at the very best, perceive this stock as dead money and they haven’t identified any viable catalysts that can attract investor attention.

Let’s also examine hedge fund activity in other stocks similar to Kindred Biosciences Inc (NASDAQ:KIN). These stocks are American Superconductor Corporation (NASDAQ:AMSC), Ballantyne Strong Inc (NYSEAMEX:BTN), ASB Bancorp Inc (NASDAQ:ASBB), and Carolina Bank Holding Inc. (NC) (NASDAQ:CLBH). This group of stocks’ market caps resemble KIN’s market cap.

Ticker No of HFs with positions Total Value of HF Positions (x1000) Change in HF Position
AMSC 6 3865 -3
BTN 5 23812 1
ASBB 4 9022 -1
CLBH 6 10130 1

As you can see these stocks had an average of 5 hedge funds with bullish positions and the average amount invested in these stocks was $12 million. That figure was $54 million in KIN’s case. American Superconductor Corporation (NASDAQ:AMSC) is the most popular stock in this table. On the other hand ASB Bancorp Inc (NASDAQ:ASBB) is the least popular one with only 4 bullish hedge fund positions. Compared to these stocks Kindred Biosciences Inc (NASDAQ:KIN) 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.

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Disclosure: None




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