Are Hedge Funds Losing Faith in Pioneer Energy Services Corp (PES)?

Since Pioneer Energy Services Corp (NYSE:PES) has experienced bearish sentiment from the entirety of the hedge funds we track, it’s easy to see that there lies a certain “tier” of funds that elected to cut their full holdings heading into Q4. Intriguingly, Neil Chriss’ Hutchin Hill Capital dumped the biggest investment of all the hedgies watched by Insider Monkey, worth close to $1.5 million in stock. John Overdeck and David Siegel’s fund, Two Sigma Advisors, also dropped its stock, about $0.9 million worth. These moves are important to note, as aggregate hedge fund interest dropped by 3 funds heading into Q4.

Let’s now take a look at hedge fund activity in other stocks similar to Pioneer Energy Services Corp (NYSE:PES). We will take a look at Dynamic Materials Corporation (NASDAQ:BOOM), AcelRx Pharmaceuticals Inc (NASDAQ:ACRX), Cherokee Inc. (NASDAQ:CHKE), and Global Partner Acquisition Corp. (NASDAQ:GPAC). This group of stocks’ market caps match PES’s market cap.

As you can see these stocks had an average of 9 hedge funds with bullish positions and the average amount invested in these stocks was $36 million. That figure was $5 million in PES’s case. AcelRx Pharmaceuticals Inc (NASDAQ:ACRX) is the most popular stock in this table. On the other hand Cherokee Inc. (NASDAQ:CHKE) is the least popular one with only 8 bullish hedge fund positions. Compared to these stocks Pioneer Energy Services Corp (NYSE:PES) 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. However, the sliding sentiment and the fact that the remaining 12 investors have just $5 million invested in the stock are cause for caution.