Do Hedge Funds Love Xplore Technologies Corp. (XPLR)?

We view hedge fund activity in the stock unfavorable, but in this case there was only a single hedge fund selling its entire position: Springbok Capital. 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 700+ 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 also examine hedge fund activity in other stocks similar to Xplore Technologies Corp. (NASDAQ:XPLR). We will take a look at Aldeyra Therapeutics Inc (NASDAQ:ALDX), Amtech Systems, Inc. (NASDAQ:ASYS), Comstock Mining, Inc. (NYSEMKT:LODE), and Cyren Ltd (NASDAQ:CYRN). This group of stocks’ market caps resemble XPLR’s market cap.

As you can see these stocks had an average of 5 hedge funds with bullish positions and the average amount invested in these stocks was $9 million, compared to just $3 million in XPLR’s case. Aldeyra Therapeutics Inc (NASDAQ:ALDX) is the most popular stock in this table. On the other hand Amtech Systems, Inc. (NASDAQ:ASYS) is the least popular one with only 4 bullish hedge fund positions. Compared to these stocks Xplore Technologies Corp. (NASDAQ:XPLR) registers the same level of popularity as XPLR. Considering that hedge funds aren’t fond of this stock in relation to other companies mentioned 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.