Is Natera Inc (NTRA) A Good Stock To Buy?

We already know that not all hedge funds are bullish on the stock and some hedge funds actually cashed in their positions entirely. Interestingly, Michael Murphy and Daniel Donoghue’s Discovery Group cashed in the biggest position of the 700 funds monitored by Insider Monkey, totaling an estimated $20.9 million in stock, and Peter Kolchinsky’s RA Capital Management was right behind this move, as the fund dumped about $9.5 million worth of shares.

Let’s check out hedge fund activity in other stocks similar to Natera Inc (NASDAQ:NTRA). We will take a look at Silver Spring Networks Inc (NYSE:SSNI), SPX Corporation (NYSE:SPXC), Five9 Inc (NASDAQ:FIVN), and Hortonworks Inc (NASDAQ:HDP). This group of stocks’ market valuations are similar to NTRA’s market valuation.

As you can see these stocks had an average of 17 hedge funds with bullish positions and the average amount invested in these stocks was $86 million. That figure was $51 million in NTRA’s case. Five9 Inc (NASDAQ:FIVN) is the most popular stock in this table. On the other hand Silver Spring Networks Inc (NYSE:SSNI) is the least popular one with only 14 bullish hedge fund positions. Natera Inc (NASDAQ:NTRA) 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 FIVN might be a better candidate to consider taking a long position in.

Disclosure: None