Is CytomX Therapeutics Inc (CTMX) A Good Stock To Buy?

We already know that not all hedge funds are bullish on the stock and some hedge funds actually got rid of their positions entirely. At the top of the heap, Joseph Edelman’s Perceptive Advisors got rid of the biggest investment of all the investors monitored by Insider Monkey, totaling about $7.6 million in stock. Millennium Management, one of the 10 largest hedge funds in the world, also said goodbye to its stock, about $0.1 million worth.

Let’s also examine hedge fund activity in other stocks – not necessarily in the same industry as CytomX Therapeutics Inc (NASDAQ:CTMX) but similarly valued. These stocks are Loxo Oncology Inc (NASDAQ:LOXO), Modine Manufacturing Co. (NYSE:MOD), Amarin Corporation plc (ADR) (NASDAQ:AMRN), and TETRA Technologies, Inc. (NYSE:TTI). This group of stocks’ market caps are similar to CTMX’s market cap.

Ticker No of HFs with positions Total Value of HF Positions (x1000) Change in HF Position
LOXO 11 224908 1
MOD 10 43734 -1
AMRN 19 221721 7
TTI 17 67275 -6

As you can see these stocks had an average of 14 hedge funds with bullish positions and the average amount invested in these stocks was $139 million. That figure was $47 million in CTMX’s case. Amarin Corporation plc (ADR) (NASDAQ:AMRN) is the most popular stock in this table. On the other hand Modine Manufacturing Co. (NYSE:MOD) is the least popular one with only 10 bullish hedge fund positions. Compared to these stocks CytomX Therapeutics Inc (NASDAQ:CTMX) is even less popular than MOD. 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.

Disclosure: None