Hedge Funds Are Dumping Pixelworks, Inc. (PXLW)

Judging by the fact that Pixelworks, Inc. (NASDAQ:PXLW) has faced declining sentiment from the smart money, it’s easy to see that there was a specific group of fund managers that elected to cut their full holdings heading into Q4. Intriguingly, Phil Frohlich’s Prescott Group Capital Management sold off the biggest stake of all the hedgies monitored by Insider Monkey, worth close to $2.9 million in stock. Rob Romero’s fund, Connective Capital Management, also said goodbye to its stock, about $0.9 million worth. These moves are important to note, as total hedge fund interest dropped by 4 funds heading into Q4.

Let’s now take a look at hedge fund activity in other stocks similar to Pixelworks, Inc. (NASDAQ:PXLW). These stocks are Dover Motorsports, Inc. (NYSE:DVD), Universal Technical Institute, Inc. (NYSE:UTI), The L.S. Starrett Company (NYSE:SCX), and Covisint Corp (NASDAQ:COVS). All of these stocks’ market caps match PXLW’s market cap.

As you can see these stocks had an average of 7 hedge funds with bullish positions and the average amount invested in these stocks was $18 million. That figure was $7 million in PXLW’s case. Universal Technical Institute, Inc. (NYSE:UTI) is the most popular stock in this table. On the other hand The L.S. Starrett Company (NYSE:SCX) is the least popular one with only 4 bullish hedge fund positions. Pixelworks, Inc. (NASDAQ:PXLW) 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 UTI might be a better candidate to consider a long position.