What Do Hedge Funds Think of Natural Gas Services Group, Inc. (NGS)?

Page 2 of 2

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 only one of the 700+ hedge funds tracked by Insider Monkey identified as a viable investment and initiated a position in the stock (that fund was AlphaOne Capital Partners).

Let’s go over hedge fund activity in other stocks – not necessarily in the same industry as Natural Gas Services Group, Inc. (NYSE:NGS) but similarly valued. These stocks are Immune Desing Corp (NASDAQ:IMDZ), Exactech, Inc. (NASDAQ:EXAC), aTyr Pharma Inc. (NASDAQ:LIFE), and Mobileiron Inc (NASDAQ:MOBL). All of these stocks’ market caps are similar to NGS’s market cap.

Ticker No of HFs with positions Total Value of HF Positions (x1000) Change in HF Position
IMDZ 6 16490 0
EXAC 12 28400 2
LIFE 7 46839 -1
MOBL 8 8961 0

As you can see these stocks had an average of 8.25 hedge funds with bullish positions and the average amount invested in these stocks was $25 million. That figure was $34 million in NGS’s case. Exactech, Inc. (NASDAQ:EXAC) is the most popular stock in this table. On the other hand Immune Desing Corp (NASDAQ:IMDZ) is the least popular one with only 6 bullish hedge fund positions. Natural Gas Services Group, Inc. (NYSE:NGS) is not the most popular stock in this group but hedge fund interest is still above average. This is a slightly positive signal but we’d rather spend our time researching stocks that hedge funds are piling on. In this regard EXAC might be a better candidate to consider a long position.

Page 2 of 2