Is Adeptus Health Inc (ADPT) A Good Stock To Buy?

Let’s go over hedge fund activity in other stocks similar to Adeptus Health Inc (NYSE:ADPT). These stocks are Flow International Corporation (NASDAQ:FLOW), Etsy Inc (NASDAQ:ETSY), Apollo Commercial Real Est. Finance Inc (NYSE:ARI), and Cubic Corporation (NYSE:CUB). This group of stocks’ market values resemble ADPT’s market value.

As you can see these stocks had an average of 15.75 hedge funds with bullish positions and the average amount invested in these stocks was $149 million. That figure was $184 million in ADPT’s case. Etsy Inc (NASDAQ:ETSY) is the most popular stock in this table. On the other hand Apollo Commercial Real Est. Finance Inc (NYSE:ARI) is the least popular one with only 8 bullish hedge fund positions. Adeptus Health Inc (NYSE:ADPT) is not the least popular stock in this group but hedge fund interest is still below average. This, combined with the recent sharp decline in hedge fund interest, is a negative signal.

Given the stock’s recent major fall, some of ADPT’s bears have covered their short positions. Whereas more than 80% of the float was short in August, around 45% of the float is short in November. Given the company’s difficulties, it remains to be seen whether the company can turn itself around in the long term, however.