Is Jive Software Inc (JIVE) A Good Stock To Buy?

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Due to the fact that Jive Software Inc (NASDAQ:JIVE) has witnessed bearish sentiment from the smart money, it’s safe to say that there were a few money managers that slashed their positions entirely in the third quarter. It’s worth mentioning that William C. Martin’s Raging Capital Management dropped the biggest stake of the 700 funds monitored by Insider Monkey, totaling close to $1.7 million in stock, and David Brown’s Hawk Ridge Management was right behind this move, as the fund said goodbye to about $0.3 million worth of shares.

Let’s check out hedge fund activity in other stocks – not necessarily in the same industry as Jive Software Inc (NASDAQ:JIVE) but similarly valued. We will take a look at Dorian LPG Ltd (NYSE:LPG), UMH Properties, Inc (NYSE:UMH), BioScrip Inc. (NASDAQ:BIOS), and Supreme Industries, Inc. (NYSEAMEX:STS). All of these stocks’ market caps resemble JIVE’s market cap.

Ticker No of HFs with positions Total Value of HF Positions (x1000) Change in HF Position
LPG 8 56727 -2
UMH 5 28818 1
BIOS 20 153706 -3
STS 9 24816 3

As you can see these stocks had an average of 11 hedge funds with bullish positions and the average amount invested in these stocks was $66 million. That figure was $49 million in JIVE’s case. BioScrip Inc. (NASDAQ:BIOS) is the most popular stock in this table. On the other hand UMH Properties, Inc (NYSE:UMH) is the least popular one with only 5 bullish hedge fund positions. Jive Software Inc (NASDAQ:JIVE) 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 BIOS might be a better candidate to consider taking a long position in.

Disclosure: None

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