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Is Dipexium Pharmaceuticals Inc (DPRX) A Good Stock To Buy?

Judging by the fact that Dipexium Pharmaceuticals Inc (NASDAQ:DPRX) has witnessed a declining sentiment from the smart money, it’s safe to say that there exists a select few money managers who were dropping their positions entirely last quarter. Interestingly, Israel Englander’s Millennium Management dropped the largest position of all the hedgies watched by Insider Monkey, totaling close to $0.4 million in stock. These moves are intriguing to say the least, as aggregate hedge fund interest stayed the same (this is a bearish signal in our experience).

Let’s also examine hedge fund activity in other stocks – not necessarily in the same industry as Dipexium Pharmaceuticals Inc (NASDAQ:DPRX) but similarly valued. These stocks are Electro Scientific Industries, Inc. (NASDAQ:ESIO), Daqo New Energy Corp (NYSE:DQ), Core Molding Technologies, Inc. (NYSEMKT:CMT), and Neff Corp (NYSE:NEFF). This group of stocks’ market caps are similar to Dipexium Pharmaceuticals Inc (NASDAQ:DPRX)’s market cap.

Ticker No of HFs with positions Total Value of HF Positions (x1000) Change in HF Position
ESIO 10 29822 -2
DQ 4 17050 -1
CMT 5 14357 1
NEFF 5 8671 0

As you can see, these stocks had an average of 6 hedge funds with bullish positions and the average amount invested in these stocks was $17 million. That figure was $35 million in Dipexium Pharmaceuticals Inc (NASDAQ:DPRX)’s case. Electro Scientific Industries, Inc. (NASDAQ:ESIO) is the most popular stock in this table. On the other hand, Daqo New Energy Corp (NYSE:DQ) is the least popular one with only 4 bullish hedge fund positions. Dipexium Pharmaceuticals Inc (NASDAQ:DPRX) is not the most popular stock in this group, but hedge fund interest is still above average. This is a slightly positive signal, but we’d rather spend our time researching stocks that hedge funds are piling on. In this regard, Electro Scientific Industries, Inc. (NASDAQ:ESIO) might be a better candidate to consider a long position.

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