Is Dice Holdings, Inc. (DHX) A Good Stock To Buy?

We view hedge fund activity in the stock unfavorable, but in this case there was only a single hedge fund selling its entire position: Tudor Investment Corp. One hedge fund selling its entire position doesn’t always imply a bearish intent. Theoretically a hedge fund may decide to sell a promising position in order to invest the proceeds in a more promising idea. However, we don’t think this is the case in this case because only one of the 700+ hedge funds tracked by Insider Monkey identified as a viable investment and initiated a position in the stock (that fund was “Fisher Asset Management).

Let’s check out hedge fund activity in other stocks – not necessarily in the same industry as Dice Holdings Inc. (NYSE:DHX) but similarly valued. We will take a look at AgroFresh Solutions Inc (NASDAQ:AGFS), Castlight Health Inc (NYSE:CSLT), Idera Pharmaceuticals Inc (NASDAQ:IDRA), and Culp, Inc. (NYSE:CFI). This group of stocks’ market caps resemble DHX’s market cap.

As you can see these stocks had an average of 17 hedge funds with bullish positions and the average amount invested in these stocks was $49 million. That figure was $25 million in DHX’s case. AgroFresh Solutions Inc (NASDAQ:AGFS) is the most popular stock in this table, while the least popular one is Castlight Health Inc NYSE:CSLT). Although it is not the least popular among these stocks, Dice Holdings Inc. (NYSE:DHX) has not attracted much attention from hedge funds. This may indicate that it is not a good stock to buy; hence we’d rather spend our time researching stocks that hedge funds are collectively the most bullish on, such as AgroFresh Solutions Inc (NASDAQ:AGFS) in this particular case.