Is Sucampo Pharmaceuticals, Inc. (SCMP) A Good Stock To Buy?

Seeing as Sucampo Pharmaceuticals, Inc. (NASDAQ:SCMP) has weathered a decline in interest from the entirety of the hedge funds we track, it’s easy to see that there exists a select few funds who were dropping their positions entirely in the third quarter. At the top of the heap, Neil Chriss’ Hutchin Hill Capital dumped the biggest stake of the “upper crust” of funds watched by Insider Monkey, comprising close to $1.1 million in stock, and Paul Marshall and Ian Wace’s Marshall Wace LLP was right behind this move, as the fund dropped about $0.4 million worth of shares.

Let’s check out hedge fund activity in other stocks similar to Sucampo Pharmaceuticals, Inc. (NASDAQ:SCMP). These stocks are PGT, Inc. (NASDAQ:PGTI), Chromcraft Revington, Inc. (NYSEAMEX:CRC), Ennis, Inc. (NYSE:EBF), and Momo Inc (ADR) (NASDAQ:MOMO). All of these stocks’ market caps match SCMP’s market cap.

Ticker No of HFs with positions Total Value of HF Positions (x1000) Change in HF Position
PGTI 14 73165 1
CRC 28 175628 -7
EBF 13 35161 0
MOMO 19 233825 10

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 $129 million. That figure was $41 million in SCMP’s case. Chromcraft Revington, Inc. (NYSEAMEX:CRC) is the most popular stock in this table. On the other hand Ennis, Inc. (NYSE:EBF) is the least popular one with only 13 bullish hedge fund positions. Sucampo Pharmaceuticals, Inc. (NASDAQ:SCMP) 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 CRC might be a better candidate to consider taking a long position in.

Disclosure: None