Is MannKind Corporation (MNKD) a Good Stock to Buy?

As industrywide interest jumped, some big names have jumped into MannKind Corporation (NASDAQ:MNKD) headfirst. Sabby Capital initiated the most valuable position in MannKind Corporation (NASDAQ:MNKD). Citadel Investment Group also initiated a $0.2 million position during the quarter.

Let’s check out hedge fund activity in other stocks similar to MannKind Corporation (NASDAQ:MNKD). These stocks are IntelSat SA (NYSE:I), Sigma Designs Inc (NASDAQ:SIGM), Atlantic Power Corp (NYSE:AT), and Farmers National Banc Corp (NASDAQ:FMNB). This group of stocks’ market valuations match MNKD’s market valuation.

Ticker No of HFs with positions Total Value of HF Positions (x1000) Change in HF Position
I 15 92302 1
SIGM 16 46848 0
AT 13 44202 3
FMNB 7 9235 1

As you can see these stocks had an average of 13 hedge funds with bullish positions and the average amount invested in these stocks was $48 million. That figure was $5 million in MNKD’s case. Sigma Designs Inc (NASDAQ:SIGM) is the most popular stock in this table. On the other hand Farmers National Banc Corp (NASDAQ:FMNB) is the least popular one with only seven bullish hedge fund positions, which is the same number as in MannKind Corporation (NASDAQ:MNKD)’s case. Considering that hedge funds aren’t fond of this stock in relation to other companies analyzed in this article, it may be a good idea to analyze it in detail and understand why the smart money isn’t behind this stock. This isn’t necessarily bad news. Although it is possible that hedge funds may think the stock is overpriced and view the stock as a short candidate, they may not be very familiar with the bullish thesis. In either case more research is warranted.

Disclosure: none