Dermira Inc (DERM): Are Hedge Funds Right About This Stock?

As industrywide interest jumped, some big names have jumped into Dermira Inc (NASDAQ:DERM) headfirst. venBio Select Advisor created the most valuable position in Dermira Inc (NASDAQ:DERM). venBio Select Advisor had $8.5 million invested in the company at the end of the quarter. Ken Griffin’s Citadel Investment Group also initiated a $5.5 million position during the quarter. The following funds were also among the new DERM investors: Dmitry Balyasny’s Balyasny Asset Management, Jason Karp’s Tourbillon Capital Partners, and Mike Vranos’ Ellington.

Let’s go over hedge fund activity in other stocks – not necessarily in the same industry as Dermira Inc (NASDAQ:DERM) but similarly valued. These stocks are US Concrete Inc (NASDAQ:USCR), Northfield Bancorp Inc (NASDAQ:NFBK), Regis Corporation (NYSE:RGS), and Integrated Silicon Solution, Inc. (NASDAQ:ISSI). This group of stocks’ market valuations resembles Dermira Inc (NASDAQ:DERM)’s market valuation.

As you can see, these stocks had an average of 15 hedge funds with bullish positions and the average amount invested in these stocks was $140 million. That figure was $91 million in Dermira Inc (NASDAQ:DERM)’s case. US Concrete Inc (NASDAQ:USCR) is the most popular stock in this table. On the other hand, Northfield Bancorp Inc (NASDAQ:NFBK) is the least popular one with only 7 bullish hedge fund positions. Dermira Inc (NASDAQ:DERM) 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, US Concrete Inc (NASDAQ:USCR) might be a better candidate to consider a long position.