Is Cryolife Inc (CRY) A Good Stock To Buy?

We already know that not all hedge funds are bullish on the stock and some hedge funds actually cashed in their positions entirely. At the top of the heap, Kenneth Tropin’s Graham Capital Management cashed in the biggest stake of the “upper crust” of funds monitored by Insider Monkey, comprising about $0.5 million in stock. Glenn Russell Dubin’s fund, Highbridge Capital Management, also dumped its stock, about $0.3 million worth.

Let’s check out hedge fund activity in other stocks similar to Cryolife Inc (NYSE:CRY). We will take a look at NACCO Industries, Inc. (NYSE:NC), Castlight Health Inc (NYSE:CSLT), Petmed Express Inc (NASDAQ:PETS), and BlackRock Debt Strategies Fund, Inc. (NYSE:DSU). This group of stocks’ market valuations are similar to CRY’s market valuation.

As you can see these stocks had an average of 8.75 hedge funds with bullish positions and the average amount invested in these stocks was $45 million. That figure was $34 million in CRY’s case. Castlight Health Inc (NYSE:CSLT) is the most popular stock in this table. On the other hand BlackRock Debt Strategies Fund, Inc. (NYSE:DSU) is the least popular one with only 4 bullish hedge fund positions. Cryolife Inc (NYSE:CRY) shares the most popular stock spot with CSLT but total dollar amount invested is relatively weak. This is a slightly positive signal but we’d rather spend our time researching stocks that hedge funds bet big bucks. The stock’s forward PE ratio of 40 is also not very encouraging. We will keep an eye on the stock and look for a large hedge fund purchase before considering a position in the stock.