Is Dipexium Pharmaceuticals Inc (DPRX) 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: Broadfin Capital. 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 none of the 700+ hedge funds tracked by Insider Monkey identified DPRX as a viable investment and initiated a position in the stock.

Let’s now take a look at hedge fund activity in other stocks – not necessarily in the same industry as Dipexium Pharmaceuticals Inc (NASDAQ:DPRX) but similarly valued. We will take a look at Shore Bancshares, Inc. (NASDAQ:SHBI), PROVIDENT BANCORP INC (NASDAQ:PVBC), Timmins Gold Corp (NYSEMKT:TGD), and Performant Financial Corp (NASDAQ:PFMT). All of these stocks’ market caps are closest to DPRX’s market cap.

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 $10 million. That figure was $26 million in DPRX’s case. Timmins Gold Corp (NYSEMKT:TGD) is the most popular stock in this table. On the other hand PROVIDENT BANCORP INC (NASDAQ:PVBC) is the least popular one with only 3 bullish hedge fund positions. Compared to these stocks Dipexium Pharmaceuticals Inc (NASDAQ:DPRX) 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.

Disclosure: None