Is Genomic Health, Inc. (GHDX) A Good Stock To Buy?

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Now that we’ve mentioned the most bullish investors, let’s also take a look at some funds that cut their entire stakes in the stock during the third quarter. It’s worth mentioning that Kevin Kotler’s Broadfin Capital cut the largest investment of the “upper crust” of funds watched by Insider Monkey, valued at about $7 million in stock, and Malcolm Fairbairn’s Ascend Capital was right behind this move, as the fund said goodbye to about $1.9 million worth of shares.

Let’s also examine hedge fund activity in other stocks – not necessarily in the same industry as Genomic Health, Inc. (NASDAQ:GHDX) but similarly valued. These stocks are Rush Enterprises, Inc. (NASDAQ:RUSHB), Acorda Therapeutics Inc (NASDAQ:ACOR), Trueblue Inc (NYSE:TBI), and Kronos Worldwide, Inc. (NYSE:KRO). This group of stocks’ market caps are closest to GHDX’s market cap.

Ticker No of HFs with positions Total Value of HF Positions (x1000) Change in HF Position
RUSHB 4 49424 0
ACOR 19 268345 -2
TBI 11 120067 -4
KRO 8 11085 2

As you can see these stocks had an average of 10 hedge funds with bullish positions and the average amount invested in these stocks was $112 million. That figure was $528 million in GHDX’s case. Acorda Therapeutics Inc (NASDAQ:ACOR) is the most popular stock in this table. On the other hand Rush Enterprises, Inc. (NASDAQ:RUSHB) is the least popular one with only 4 bullish hedge fund positions. Genomic Health, Inc. (NASDAQ:GHDX) is the most popular stock in this group (GHDX and ACOR have the same number of hedge funds but hedge funds invested more money in GHDX). This is a positive signal and we believe investors should consider taking a long position in GHDX.

Disclosure: None

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