Do Hedge Funds Love Innocoll Holdings PLC (INNL)?

Judging by the fact that Innocoll Holdings PLC (NASDAQ:INNL) has witnessed declining sentiment from the entirety of the hedge funds we track, it’s easy to see that there were a few hedgies that slashed their full holdings in the third quarter. Intriguingly, James E. Flynn’s Deerfield Management dropped the biggest stake of all the hedgies studied by Insider Monkey, valued at an estimated $1.7 million in stock, and Benjamin A. Smith’s Laurion Capital Management was right behind this move, as the fund dropped about $0.1 million worth of shares.

Let’s now take a look at hedge fund activity in other stocks similar to Innocoll Holdings PLC (NASDAQ:INNL). We will take a look at Silicon Motion Technology Corp. (ADR) (NASDAQ:SIMO), Power Integrations Inc (NASDAQ:POWI), Semtech Corporation (NASDAQ:SMTC), and South State Corporation (NASDAQ:SSB). This group of stocks’ market values match INNL’s market value.

Ticker No of HFs with positions Total Value of HF Positions (x1000) Change in HF Position
SIMO 23 254015 2
POWI 9 109107 -3
SMTC 17 82951 4
SSB 11 46544 -3

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 $123 million. That figure was $21 million in INNL’s case. Silicon Motion Technology Corp. (ADR) (NASDAQ:SIMO) is the most popular stock in this table. On the other hand Power Integrations Inc (NASDAQ:POWI) is the least popular one with only 9 bullish hedge fund positions. Compared to these stocks Innocoll Holdings PLC (NASDAQ:INNL) is as less popular than POWI. 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. This isn’t necessarily bad news. Although it is possible that hedge funds may think the stock is overpriced and view the stock as a short candidate, they may not be very familiar with the bullish thesis. In either case more research is warranted.

Disclosure: None