Is Revance Therapeutics Inc (RVNC) A Good Stock To Buy?

Judging by the fact that Revance Therapeutics Inc (NASDAQ:RVNC) has faced bearish sentiment from the aggregate hedge fund industry, we can see that there lies a certain “tier” of money managers who sold off their positions entirely last quarter. It’s worth mentioning that Ken Griffin’s Citadel Investment Group dumped the largest stake of the 700 funds tracked by Insider Monkey, worth about $0.8 million in stock. Mike Vranos’s fund, Ellington, also sold off its stock, about $0.6 million worth of RVNC shares. These moves are intriguing to say the least, as total hedge fund interest dropped by 2 funds last quarter.

Let’s also examine hedge fund activity in other stocks – not necessarily in the same industry as Revance Therapeutics Inc (NASDAQ:RVNC) but similarly valued. We will take a look at Libbey Inc. (NYSEAMEX:LBY), Brookline Bancorp, Inc. (NASDAQ:BRKL), Isle of Capri Casinos (NASDAQ:ISLE), and Wabash National Corporation (NYSE:WNC). This group of stocks’ market values are closest to RVNC’s market value.

As you can see these stocks had an average of 19 hedge funds with bullish positions and the average amount invested in these stocks was $86 million. In the case of RVNC, that figure was $58 million. Isle of Capri Casinos (NASDAQ:ISLE) and Wabash National Corporation (NYSE:WNC) are leading the pack, while Brookline Bancorp, Inc. (NASDAQ:BRKL) is the least popular one with only 12 bullish hedge fund positions. Compared to these stocks Revance Therapeutics Inc (NASDAQ:RVNC) is even less popular than BRKL. 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.