Is CymaBay Therapeutics Inc (CBAY) A Good Stock To Buy?

As aggregate interest increased, specific money managers have jumped into CymaBay Therapeutics Inc (NASDAQ:CBAY) headfirst. Kingdon Capital assembled the largest position in CymaBay Therapeutics Inc (NASDAQ:CBAY). Kingdon Capital had $1.8 million invested in the company at the end of the quarter. Armistice Capital also made a $1.6 million investment in the stock during the quarter. The only other fund with a new position in the stock is Ghost Tree Capital.

Let’s now take a look at hedge fund activity in other stocks similar to CymaBay Therapeutics Inc (NASDAQ:CBAY). We will take a look at The Female Health Company (NASDAQ:FHCO), Zhone Technologies Inc (NASDAQ:ZHNE), Fuel Tech Inc. (NASDAQ:FTEK), and Stanley Furniture Co. (NASDAQ:STLY). This group of stocks’ market valuations is similar to CymaBay Therapeutics Inc (NASDAQ:CBAY)’s market valuation.

Ticker No of HFs with positions Total Value of HF Positions (x1000) Change in HF Position
FHCO 4 4361 -5
ZHNE 4 474 0
FTEK 4 1782 0
STLY 4 12112 0

As you can see, these stocks had an average of 4 hedge funds with bullish positions and the average amount invested in these stocks was $5 million. That figure was $12 million in CymaBay Therapeutics Inc (NASDAQ:CBAY)’s case. The Female Health Company (NASDAQ:FHCO) is the most popular stock in this table. On the other hand, The Female Health Company (NASDAQ:FHCO) is the least popular one with only 4 bullish hedge fund positions. Compared to these stocks, CymaBay Therapeutics Inc (NASDAQ:CBAY) is more popular among hedge funds. Considering that hedge funds are fond of this stock in relation to its market cap peers, it may be a good idea to analyze it in detail and potentially include it in your portfolio.