Is MiMedx Group Inc (MDXG) A Good Stock To Buy?

Due to the fact that MiMedx Group Inc (NASDAQ:MDXG) has witnessed bearish sentiment from the smart money, we can see that there were a few fund managers who sold off their entire stakes last quarter. Intriguingly, Steve Cohen’s Point72 Asset Management dumped the largest investment of the 700 funds tracked by Insider Monkey, comprising an estimated $1.2 million in stock. Ken Griffin’s fund, Citadel Investment Group, also dropped its stock, about $1 million worth.

Let’s check out hedge fund activity in other stocks – not necessarily in the same industry as MiMedx Group Inc (NASDAQ:MDXG) but similarly valued. These stocks are Compass Diversified Holdings (NYSE:CODI), Maiden Holdings, Ltd. (NASDAQ:MHLD), Zhaopin Ltd (ADR) (NYSE:ZPIN), and Finish Line Inc (NASDAQ:FINL). This group of stocks’ market caps are similar to MDXG’s market cap.

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 $22 million. That figure was $14 million in MDXG’s case. Finish Line Inc (NASDAQ:FINL) is the most popular stock in this table. On the other hand Zhaopin Ltd (ADR) (NYSE:ZPIN) is the least popular one with only four bullish hedge fund positions. MiMedx Group Inc (NASDAQ:MDXG) 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 FINL might be a better candidate to consider taking a long position in.

Disclosure: none