Is Servicesource International Inc (SREV) A Good Stock To Buy?

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We view hedge fund activity in the stock unfavorable, as there were no hedge funds that initiated new positions, neither ones that decided to dump their holdings. There were, however, certain hedge funds that took steps to reduce their exposure to Servicesource International Inc (NASDAQ:SREV). Cannell Capital, managed by J. Carlo Cannell, cut its investment by 15% during the third quarter, while Ken Griffin’s Citadel Investment Group dumped 50% of its holding by the end of September.

Let’s check out hedge fund activity in other stocks – not necessarily in the same industry as Servicesource International Inc (NASDAQ:SREV) but similarly valued. These stocks are NextPoint Residential Trust Inc (NYSE:NXRT), ConforMIS Inc (NASDAQ:CFMS), Medley Capital Corp (NYSE:MCC), and Petmed Express Inc (NASDAQ:PETS). This group of stocks’ market caps are similar to SREV’s market cap.

Ticker No of HFs with positions Total Value of HF Positions (x1000) Change in HF Position
NXRT 11 59174 1
CFMS 4 12486 -1
MCC 4 4517 0
PETS 10 50583 0

As you can see these stocks had an average of 7 hedge funds with bullish positions and the average amount invested in these stocks was $32 million. That figure was $145 million in SREV’s case. NextPoint Residential Trust Inc (NYSE:NXRT) is the most popular stock in this table. On the other hand ConforMIS Inc (NASDAQ:CFMS) and Medley Capital Corp (NYSE:MCC) are the least popular ones with only 4 bullish hedge fund positions each. Compared to these stocks Servicesource International Inc (NASDAQ:SREV) is more popular among hedge funds. Considering that hedge funds are fond of this stock in relation to its market cap peers, it may be a good idea to analyze it in detail and potentially include it in your portfolio.

Disclosure: none.

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