Here is What Hedge Funds Think About Amber Road Inc (AMBR)

We view hedge fund activity in the stock unfavorable, but in this case there was only a single hedge fund selling its entire position: Skylands 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 D E Shaw).

Let’s go over hedge fund activity in other stocks similar to Amber Road Inc (NYSE:AMBR). We will take a look at Alaska Communications Systems Group Inc (NASDAQ:ALSK), ASB Bancorp Inc (NASDAQ:ASBB), PC Tel Inc (NASDAQ:PCTI), and Olympic Steel, Inc. (NASDAQ:ZEUS). All of these stocks’ market caps are similar to AMBR’s market cap.

As you can see these stocks had an average of 6.25 hedge funds with bullish positions and the average amount invested in these stocks was $12 million. That figure was $13 million in AMBR’s case. Olympic Steel, Inc. (NASDAQ:ZEUS) is the most popular stock in this table. On the other hand ASB Bancorp Inc (NASDAQ:ASBB) is the least popular one with only 4 bullish hedge fund positions. Amber Road Inc (NYSE:AMBR) 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 ZEUS might be a better candidate to consider a long position.