BIOLASE Inc (BIOL): How It Stacks Up Against Its Peers

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We view hedge fund activity in the stock as unfavorable, but in this case there was only a single hedge fund selling its entire position: Camber Capital Management. 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 800+ hedge funds tracked by Insider Monkey identified as a viable investment and initiated a position in the stock (that fund was Renaissance Technologies).

Let’s now review hedge fund activity in other stocks similar to BIOLASE Inc (NASDAQ:BIOL). We will take a look at Nabriva Therapeutics AG-ADR (NASDAQ:NBRV), Crown Crafts, Inc. (NASDAQ:CRWS), First Trust Strategic High Income Fd II (NYSE:FHY), and Houston Wire & Cable Company (NASDAQ:HWCC). This group of stocks’ market valuations match BIOL’s market valuation.

Ticker No of HFs with positions Total Value of HF Positions (x1000) Change in HF Position
NBRV 5 20300 0
CRWS 4 17324 -1
FHY 2 2486 -2
HWCC 5 17917 -2

As you can see these stocks had an average of 4 hedge funds with bullish positions and the average amount invested in these stocks was $15 million. That figure was $6 million in BIOL’s case. Nabriva Therapeutics AG-ADR (NASDAQ:NBRV) is the most popular stock in this table. On the other hand First Trust Strategic High Income Fd II (NYSE:FHY) is the least popular one with only 2 bullish hedge fund positions. Compared to these stocks BIOLASE Inc (NASDAQ:BIOL) 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

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