Is NewLink Genetics Corp (NLNK) a Good Stock to Buy?

Now that we’ve mentioned the most bullish investors, let’s also take a look at some funds that sold off their entire stakes in the stock during the third quarter. Intriguingly, First Eagle Investment Management sold off the largest stake of all the hedgies monitored by Insider Monkey, worth close to $24.6 million in stock. Ken Griffin’s fund, Citadel Investment Group, also sold off its call options, about $0.7 million worth.

Let’s now review hedge fund activity in other stocks – not necessarily in the same industry as NewLink Genetics Corp (NASDAQ:NLNK) but similarly valued. We will take a look at Winmark Corporation (NASDAQ:WINA), La Jolla Pharmaceutical Company (NASDAQ:LJPC), Sun Bancorp, Inc. /NJ (NASDAQ:SNBC), and Park Sterling Bank (NASDAQ:PSTB). All of these stocks’ market caps resemble NLNK’s market cap.

Ticker No of HFs with positions Total Value of HF Positions (x1000) Change in HF Position
WINA 3 62096 0
LJPC 10 156944 1
SNBC 4 128657 -2
PSTB 13 41389 -1

As you can see these stocks had an average of eight hedge funds with bullish positions and the average amount invested in these stocks was $97 million. That figure was $52 million in NLNK’s case. Park Sterling Bank (NASDAQ:PSTB) is the most popular stock in this table. On the other hand Winmark Corporation (NASDAQ:WINA) is the least popular one with only three bullish hedge fund positions. NewLink Genetics Corp (NASDAQ:NLNK) is not the most popular stock in this group but hedge fund interest is still above average. This is a slightly positive signal but we’d rather spend our time researching stocks that hedge funds are piling on. In this regard Park Sterling Bank (NASDAQ:PSTB) might be a better candidate to consider taking a long position in.

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Disclosure: none