Is Mitek Systems, Inc. (MITK) A Good Stock To Buy?

Since Mitek Systems, Inc. (NASDAQ:MITK) has experienced bearish sentiment from the aggregate hedge fund industry, we can see that there lies a certain “tier” of funds who sold off their positions entirely last quarter. At the top of the heap, Israel Englander’s Millennium Management said goodbye to the largest stake of the 700 funds monitored by Insider Monkey, valued at close to $0.2 million in stock. Gregory Fraser, Rudolph Kluiber, and Timothy Krochuk’s fund, GRT Capital Partners, also sold off its position, valued at about $0.1 million.

Let’s go over hedge fund activity in other stocks similar to Mitek Systems, Inc. (NASDAQ:MITK). These stocks are Calithera Biosciences Inc (NASDAQ:CALA), Alimera Sciences Inc (NASDAQ:ALIM), First Trust Strategic High Income Fd II (NYSE:FHY), and Jason Industries Inc (NASDAQ:JASN). This group of stocks’ market caps are closest to MITK’s market cap.

As you can see these stocks had an average of 8 hedge funds with bullish positions and the average amount invested in these stocks was $25 million. That figure was just $2 million in MITK’s case. Jason Industries Inc (NASDAQ:JASN) is the most popular stock in this table. On the other hand, First Trust Strategic High Income Fd II (NYSE:FHY) is the least popular one with only 4 bullish hedge fund positions. Mitek Systems, Inc. (NASDAQ:MITK) 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 JASN might be a better candidate to consider a long position.