Is Ampio Pharmaceuticals, Inc. (AMPE) A Good Stock To Buy?

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Seeing as Ampio Pharmaceuticals, Inc. (NYSEMKT:AMPE) has experienced falling interest from the aggregate hedge fund industry, it’s safe to say that there exists a select few fund managers that elected to cut their entire stakes by the end of the third quarter. Intriguingly, Paul Tudor Jones’s Tudor Investment Corp dropped the biggest investment of the “upper crust” of funds tracked by Insider Monkey, totaling about $0.2 million in stock. Ken Griffin’s fund, Citadel Investment Group, also said goodbye to its stock, about $0.2 million worth. These moves are interesting, as total hedge fund interest dropped by 4 funds by the end of the third quarter.

Let’s now take a look at hedge fund activity in other stocks – not necessarily in the same industry as Ampio Pharmaceuticals, Inc. (NYSEMKT:AMPE) but similarly valued. We will take a look at Agile Therapeutics Inc (NASDAQ:AGRX), Century Casinos, Inc. (NASDAQ:CNTY), J Alexander’s Holdings Inc (NYSE:JAX), and Harmony Merger Corp (NASDAQ:HRMNU). This group of stocks’ market values resemble AMPE’s market value.

Ticker No of HFs with positions Total Value of HF Positions (x1000) Change in HF Position
AGRX 9 41890 -1
CNTY 8 33083 1
JAX 18 31596 18
HRMNU 6 25560 0

As you can see these stocks had an average of 10 hedge funds with bullish positions and the average amount invested in these stocks was $33 million. That figure was just $11 million in AMPE’s case. J Alexander’s Holdings Inc (NYSE:JAX) is the most popular stock in this table. On the other hand Harmony Merger Corp (NASDAQ:HRMNU) is the least popular one with only 6 bullish hedge fund positions. Compared to these stocks Ampio Pharmaceuticals, Inc. (NYSEMKT:AMPE) is even less popular than HRMNU. 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.

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