Is Immunomedics, Inc. (IMMU) A Good Stock To Buy?

Judging by the fact that Immunomedics, Inc. (NASDAQ:IMMU) has witnessed declining sentiment from the aggregate hedge fund industry, we can see that there were a few fund managers who sold off their positions entirely by the end of the third quarter. Interestingly, James E. Flynn’s Deerfield Management dumped the biggest investment of all the hedgies monitored by Insider Monkey, totaling an estimated $10.2 million in call options, and Israel Englander’s Millennium Management was right behind this move, as the fund dropped about $4.9 million worth. These moves are intriguing to say the least, as aggregate hedge fund interest fell by 4 funds by the end of the third quarter.

Let’s now take a look at hedge fund activity in other stocks similar to Immunomedics, Inc. (NASDAQ:IMMU). We will take a look at Oil-Dri Corporation of America (NYSE:ODC), KVH Industries, Inc. (NASDAQ:KVHI), Cloud Peak Energy Inc. (NYSE:CLD), and Brightcove Inc (NASDAQ:BCOV). This group of stocks’ market valuations are closest to IMMU’s market valuation.

As you can see these stocks had an average of 10.5 hedge funds with bullish positions and the average amount invested in these stocks was $22 million. That figure was $11 million in IMMU’s case. Cloud Peak Energy Inc. (NYSE:CLD) is the most popular stock in this table. On the other hand Oil-Dri Corporation of America (NYSE:ODC) is the least popular one with only 4 bullish hedge fund positions. Immunomedics, Inc. (NASDAQ:IMMU) 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 CLD might be a better candidate to consider a long position.