Is Derma Sciences Inc (DSCI) a Good Buy?

Intriguingly, Warren Lammert’s Granite Point Capital dumped the biggest stake of the 700 funds tracked by Insider Monkey, comprising close to $0.4 million in stock. Ben Levine, Andrew Manuel and Stefan Renold’s fund, LMR Partners, also sold off its stock, about $0.2 million worth. These moves are important to note, as total hedge fund interest stayed the same (this is a bearish signal in our experience).

Let’s go over hedge fund activity in other stocks – not necessarily in the same industry as Derma Sciences Inc (NASDAQ:DSCI) but similarly valued. We will take a look at Commercial Vehicle Group, Inc. (NASDAQ:CVGI), Golden Entertainment Inc (NASDAQ:GDEN), Upland Software Inc (NASDAQ:UPLD), and Community Healthcare Trust Inc (NYSE:CHCT). This group of stocks’ market valuations resemble DSCI’s market valuation.

As you can see these stocks had an average of 7.5 hedge funds with bullish positions and the average amount invested in these stocks was $17 million. That figure was $60 million in DSCI’s case. Commercial Vehicle Group, Inc. (NASDAQ:CVGI) is the most popular stock in this table. On the other hand Upland Software Inc (NASDAQ:UPLD) is the least popular one with only 4 bullish hedge fund positions. Compared to these stocks Derma Sciences Inc (NASDAQ:DSCI) 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.