Inovio Pharmaceuticals Inc (INO): Hedge Fund Sentiment Unchanged

We can judge whether Inovio Pharmaceuticals Inc (NASDAQ:INO) is a good investment right now by following the lead of some of the best investors in the world and piggybacking their ideas. There’s no better way to get these firms’ immense resources and analytical capabilities working for us than to follow their lead into their best ideas. While not all of these picks will be winners, research shows that these picks historically outperformed the market when we factor in known risk factors.

Hedge fund interest in Inovio Pharmaceuticals Inc shares was flat at the end of last quarter. This is usually a negative indicator. The level and the change in hedge fund popularity aren’t the only variables you need to analyze to decipher hedge funds’ perspectives. A stock may witness a boost in popularity, but it may still be less popular than similarly priced stocks. That’s why at the end of this article we will examine companies such as Zumiez Inc. (NASDAQ:ZUMZ), State National Companies Inc (NASDAQ:SNC), and Infinity Pharmaceuticals Inc. (NASDAQ:INFI) to gather more data points.

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Now, we’re going to analyze the fresh action surrounding Inovio Pharmaceuticals Inc (NASDAQ:INO).

What have hedge funds been doing with Inovio Pharmaceuticals Inc (NASDAQ:INO)?

At the end of the third quarter, a total of 7 of the hedge funds tracked by Insider Monkey held long positions in this stock, unchanged from the previous quarter. With hedge funds’ positions undergoing their usual ebb and flow, there exists a select group of notable hedge fund managers who were increasing their holdings considerably (or already accumulated large positions).

According to Insider Monkey’s hedge fund database, Sabby Capital, managed by Hal Mintz, holds the largest position in Inovio Pharmaceuticals Inc (NASDAQ:INO). The fund has reported a $4.3 million position in the stock, comprising 0.2% of its 13F portfolio. The second largest stake is held by Citadel Investment Group, managed by Ken Griffin, which holds a $2.4 million stake; less than 0.1% of its 13F portfolio is allocated to the stock. Remaining professional money managers with similar optimism comprise Israel Englander’s Millennium Management and Glenn Russell Dubin’s Highbridge Capital Management.

Let’s now review hedge fund activity in other stocks similar to Inovio Pharmaceuticals Inc (NASDAQ:INO). We will take a look at Zumiez Inc. (NASDAQ:ZUMZ), State National Companies Inc (NASDAQ:SNC), Infinity Pharmaceuticals Inc. (NASDAQ:INFI), and Myers Industries, Inc. (NYSE:MYE). This group of stocks’ market values are closest to INO’s market value.

Ticker No of HFs with positions Total Value of HF Positions (x1000) Change in HF Position
ZUMZ 12 18348 1
SNC 10 158235 0
INFI 20 100354 -1
MYE 7 66386 1

As you can see these stocks had an average of 12 hedge funds with bullish positions and the average amount invested in these stocks was $86 million. That figure was $13 million in INO’s case, a rather negative signal. Infinity Pharmaceuticals Inc. (NASDAQ:INFI) is the most popular stock in this table, while Myers Industries, Inc. (NYSE:MYE) is the least popular one with only 7 bullish hedge fund positions, in line with Inovio Pharmaceuticals Inc (NASDAQ:INO). 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.