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Is Ignyta Inc (RXDX) A Good Stock To Buy?

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. Intriguingly, Ori Hershkovitz’s Nexthera Capital cut the biggest position of all the investors watched by Insider Monkey, valued at close to $1.3 million in stock, and Philip Hempleman’s Ardsley Partners was right behind this move, as the fund dropped about $0.1 million worth of shares.

Let’s also examine hedge fund activity in other stocks – not necessarily in the same industry as Ignyta Inc (NASDAQ:RXDX) but similarly valued. These stocks are Safeguard Scientifics, Inc (NYSE:SFE), Kandi Technolgies Corp. (NASDAQ:KNDI), Selecta Biosciences Inc (NASDAQ:SELB), and Sierra Bancorp (NASDAQ:BSRR). This group of stocks’ market valuations are similar to RXDX’s market valuation.

Ticker No of HFs with positions Total Value of HF Positions (x1000) Change in HF Position
SFE 5 3546 -1
KNDI 3 741 2
SELB 5 36428 -2
BSRR 1 3003 -2

As you can see these stocks had an average of four funds with bullish positions and the average amount invested in these stocks was $11 million, versus $94 million in RXDX’s case. Safeguard Scientifics, Inc (NYSE:SFE) is the most popular stock in this table. On the other hand Sierra Bancorp (NASDAQ:BSRR) is the least popular one with only one fund holding shares. Compared to these stocks Ignyta Inc (NASDAQ:RXDX) 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

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