athenahealth, Inc (ATHN): Smart Money Heads for the Exits

We already know that not all hedge funds are bullish on the stock and some hedge funds actually cashed in their positions entirely. Interestingly, Principal Global Investors’ Columbus Circle Investors cashed in the largest position of all the hedgies followed by Insider Monkey, comprising an estimated $14.4 million in stock, and David E. Shaw’s D E Shaw was right behind this move, as the fund cut about $6.7 million worth of shares.

Let’s also examine hedge fund activity in other stocks – not necessarily in the same industry as athenahealth, Inc (NASDAQ:ATHN) but similarly valued. We will take a look at Pinnacle Foods Inc (NYSE:PF), Carter’s, Inc. (NYSE:CRI), Six Flags Entertainment Corp (NYSE:SIX), and Servicemaster Global Holdings Inc (NYSE:SERV). All of these stocks’ market caps match ATHN’s market cap.

As you can see these stocks had an average of 35 hedge funds with bullish positions and the average amount invested in these stocks was $1.21 billion. That figure was $157 million in ATHN’s case. Pinnacle Foods Inc (NYSE:PF) is the most popular stock in this table. On the other hand Six Flags Entertainment Corp (NYSE:SIX) is the least popular one with only 28 bullish hedge fund positions. Compared to these stocks athenahealth, Inc (NASDAQ:ATHN) is even less popular than SIX. Considering that hedge funds aren’t fond of this stock in relation to other companies analyzed in this article, it may be a good idea to analyze it in detail and understand why the smart money isn’t behind this stock, and why it’s been bleeding smart money investors over the last 2 quarters.

Disclosure: None