Is Idera Pharmaceuticals Inc (IDRA) a Good Stock to Buy?

Consequently, key hedge funds were breaking ground themselves. Millennium Management established the largest position in Idera Pharmaceuticals Inc (NASDAQ:IDRA). Millennium Management had $0.5 million invested in the company at the end of the quarter. Glenn Russell Dubin’s Highbridge Capital Management also initiated a $0.1 million position during the quarter. The only other fund with a new position in the stock is Ken Griffin’s Citadel Investment Group.

Let’s now review hedge fund activity in other stocks – not necessarily in the same industry as Idera Pharmaceuticals Inc (NASDAQ:IDRA) but similarly valued. We will take a look at Reading International, Inc. (NASDAQ:RDI), Aralez Pharmaceuticals Inc (NASDAQ:ARLZ), City Office REIT Inc (NYSE:CIO), and Lionbridge Technologies, Inc. (NASDAQ:LIOX). This group of stocks’ market valuations resemble IDRA’s market valuation.

As you can see these stocks had an average of 12 hedge funds with bullish positions and the average amount invested in these stocks was $50 million. That figure was $31 million in IDRA’s case. Aralez Pharmaceuticals Inc (NASDAQ:ARLZ) is the most popular stock in this table. On the other hand City Office REIT Inc (NYSE:CIO) is the least popular one with only 6 bullish hedge fund positions. Idera Pharmaceuticals Inc (NASDAQ:IDRA) is not the least popular stock in this group but hedge fund interest is still below average. This is a slightly negative signal and we’d rather spend our time researching stocks that hedge funds are piling on. In this regard ARLZ might be a better candidate to consider taking a long position in.