Is TherapeuticsMD Inc (TXMD) a Good Stock To Buy?

As aggregate interest increased, key hedge funds have jumped into TherapeuticsMD Inc (NYSEMKT:TXMD) headfirst. Balyasny Asset Management, led by Dmitry Balyasny, established the most valuable position in TherapeuticsMD Inc (NYSEMKT:TXMD). Balyasny Asset Management had $5.5 million invested in the company at the end of the quarter. Ken Greenberg and David Kim’s Ghost Tree Capital also made a $1.7 million investment in the stock during the quarter. The other funds with brand new TXMD positions are Warren Lammert’s Granite Point Capital, Hal Mintz’s Sabby Capital, and John Overdeck and David Siegel’s Two Sigma Advisors.

Let’s now review hedge fund activity in other stocks similar to TherapeuticsMD Inc (NYSEMKT:TXMD). These stocks are Quad/Graphics, Inc. (NYSE:QUAD), Fossil Inc (NASDAQ:FOSL), Interactive Intelligence Group Inc (NASDAQ:ININ), and G-III Apparel Group, Ltd. (NASDAQ:GIII). This group of stocks’ market caps are closest to TXMD’s market cap.

Ticker No of HFs with positions Total Value of HF Positions (x1000) Change in HF Position
QUAD 21 107638 3
FOSL 15 119436 -5
ININ 13 258568 1
GIII 11 78336 -1

As you can see these stocks had an average of 15 hedge funds with bullish positions and the average amount invested in these stocks was $141 million, versus $57 million in TXMD’s case. Quad/Graphics, Inc. (NYSE:QUAD) is the most popular stock in this table. On the other hand G-III Apparel Group, Ltd. (NASDAQ:GIII) is the least popular one with only 11 bullish hedge fund positions. TherapeuticsMD Inc (NYSEMKT:TXMD) 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 QUAD might be a better candidate to consider taking a long position in.

Disclosure: none