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Is Aerohive Networks Inc (HIVE) A Good Stock To Buy?

Seeing as Aerohive Networks Inc (NYSE:HIVE) has experienced a falling interest from the entirety of the hedge funds we track, it’s safe to say that there lies a certain “tier” of funds that decided to sell off their entire stakes last quarter. It’s worth mentioning that Israel Englander’s Millennium Management said goodbye to the largest position of the “upper crust” of funds monitored by Insider Monkey, totaling close to $0.2 million in stock, and D E Shaw was right behind this move, as the fund dumped about $0.1 million worth of shares. These bearish behaviors are interesting, as total hedge fund interest fell by 1 fund last quarter.

Let’s now review hedge fund activity in other stocks – not necessarily in the same industry as Aerohive Networks Inc (NYSE:HIVE) but similarly valued. These stocks are Genco Shipping & Trading Limited (NYSE:GNK), Peoples Utah Bancorp (NASDAQ:PUB), Permian Basin Royalty Trust (NYSE:PBT), and NextPoint Residential Trust Inc (NYSE:NXRT). This group of stocks’ market caps are similar to Aerohive Networks Inc (NYSE:HIVE)’s market cap.

Ticker No of HFs with positions Total Value of HF Positions (x1000) Change in HF Position
GNK 10 106210 10
PUB 6 11313 -3
PBT 5 16026 -2
NXRT 7 36265 0

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 $42 million. That figure was $29 million in Aerohive Networks Inc (NYSE:HIVE)’s case. Genco Shipping & Trading Limited (NYSE:GNK) is the most popular stock in this table. On the other hand, Permian Basin Royalty Trust (NYSE:PBT) is the least popular one with only 5 bullish hedge fund positions. Aerohive Networks Inc (NYSE:HIVE) is not the least popular stock in this group, but hedge fund interest is still below average. This is a slightly negative signal and we’d rather spend our time researching stocks that hedge funds are piling on. In this regard, Genco Shipping & Trading Limited (NYSE:GNK) might be a better candidate to consider a long position.

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