Is AudioCodes Ltd. (AUDC) A Good Stock to Buy?

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As one would reasonably expect, key money managers have jumped into AudioCodes Ltd. (NASDAQ:AUDC) headfirst. Laurion Capital Management created the most outsized position in AudioCodes Ltd. (NASDAQ:AUDC). McKinley Capital Management also initiated a $1.3 million position during the quarter. The other funds with new positions in the stock are Israel Englander’s Millennium Management and Peter Muller’s PDT Partners.

Let’s go over hedge fund activity in other stocks – not necessarily in the same industry as AudioCodes Ltd. (NASDAQ:AUDC) but similarly valued. We will take a look at Arctic Cat Inc (NASDAQ:ACAT), Abeona Therapeutics Inc (NASDAQ:ABEO), Agile Therapeutics Inc (NASDAQ:AGRX), and Hornbeck Offshore Services, Inc. (NYSE:HOS). This group of stocks’ market caps are closest to AUDC’s market cap.

Ticker No of HFs with positions Total Value of HF Positions (x1000) Change in HF Position
ACAT 6 13728 0
ABEO 13 39758 4
AGRX 9 43289 1
HOS 14 78226 -1

As you can see these stocks had an average of 11 hedge funds with bullish positions and the average amount invested in these stocks was $44 million. That figure was $21 million in AUDC’s case. Hornbeck Offshore Services, Inc. (NYSE:HOS) is the most popular stock in this table. On the other hand Arctic Cat Inc (NASDAQ:ACAT) is the least popular one with only 6 bullish hedge fund positions. AudioCodes Ltd. (NASDAQ:AUDC) 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 HOS might be a better candidate to consider taking a long position in.

Disclosure: None

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