Is Lipocine Inc (LPCN) A Good Stock To Buy?

Because Lipocine Inc (NASDAQ:LPCN) has witnessed a declination in interest from the smart money, we can see that there is a sect of hedge funds that decided to sell off their full holdings heading into Q4. At the top of the heap, Steven Boyd’s Armistice Capital said goodbye to the largest position of the “upper crust” of funds tracked by Insider Monkey, worth about $7.3 million in stock. Peter A. Wright’s fund, P.A.W. Capital Partners, also cut its stock, about $0.3 million worth.

Let’s now check out hedge fund activity in other stocks similar to Lipocine Inc (NASDAQ:LPCN). These stocks are VSE Corporation (NASDAQ:VSEC), Ivy High Income Opportunities Fund (NYSE:IVH), vTv Therapeutics Inc (NASDAQ:VTVT), and CAI International Inc (NYSE:CAI). This group of stocks’ market values resemble LPCN’s market value.

As you can see these stocks had an average of 6.5 hedge funds with bullish positions and the average amount invested in these stocks was $5 million. CAI International Inc (NYSE:CAI) is the most popular stock in this table. On the other hand Ivy High Income Opportunities Fund (NYSE:IVH) is the least popular one with only 4 bullish hedge fund positions. Lipocine Inc (NASDAQ:LPCN) is as popular as CAI but, more importantly, hedge funds collectively had more than $57 million invested in the stock. This is more than 8 times the figure invested in CAI. Overall, hedge funds own more than a quarter of LPCN’s outstanding shares. We think investors should seriously research this company and consider adding it to their portfolios.