Is Calithera Biosciences Inc (CALA) A Good Stock To Buy?

Since Calithera Biosciences Inc (NASDAQ:CALA) has witnessed 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 who sold off their positions entirely heading into Q4. It’s worth mentioning that Mike Vranos’ Ellington dropped the largest investment of the “upper crust” of funds watched by Insider Monkey, valued at close to $0.6 million in stock, and Matthew Strobeck’s Birchview Capital was right behind this move, as the fund cut about $0.1 million worth of shares. These bearish behaviors are important to note, as total hedge fund interest dropped by 1 fund heading into Q4.

Let’s now review hedge fund activity in other stocks similar to Calithera Biosciences Inc (NASDAQ:CALA). We will take a look at Alimera Sciences Inc (NASDAQ:ALIM), First Trust Strategic High Income Fd II (NYSE:FHY), Quinpario Acquisition Corp (NASDAQ:JASN), and Sotherly Hotels Inc (NASDAQ:SOHO). All of these stocks’ market caps match Calithera Biosciences Inc (NASDAQ:CALA)’s market cap.

As you can see, these stocks had an average of 8 hedge funds with bullish positions and the average amount invested in these stocks was $21 million. That figure was $22 million in Calithera Biosciences Inc (NASDAQ:CALA)’s case. Quinpario Acquisition Corp (NASDAQ:JASN) is the most popular stock in this table. On the other hand, First Trust Strategic High Income Fd II (NYSE:FHY) is the least popular one with only 4 bullish hedge fund positions. Calithera Biosciences Inc (NASDAQ:CALA) 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, Quinpario Acquisition Corp (NASDAQ:JASN) might be a better candidate to consider a long position.