Is Trevena Inc (TRVN) A Good Stock To Buy?

We view hedge fund activity in the stock unfavorable, but in this case there was only a single hedge fund selling its entire position: Springbok Capital. One hedge fund selling its entire position doesn’t always imply a bearish intent. Theoretically a hedge fund may decide to sell a promising position in order to invest the proceeds in a more promising idea. However, we don’t think this is the case in this case because only one of the 800+ hedge funds tracked by Insider Monkey identified as a viable investment and initiated a position in the stock (that fund was D E Shaw).

Let’s go over hedge fund activity in other stocks – not necessarily in the same industry as Trevena Inc (NASDAQ:TRVN) but similarly valued. These stocks are Covenant Transportation Group, Inc. (NASDAQ:CVTI), NQ Mobile Inc (ADR) (NYSE:NQ), Park Electrochemical Corp. (NYSE:PKE), and Western Asset High Yield Defined Opportunity Fund Inc. (NYSE:HYI). This group of stocks’ market values are closest to TRVN’s market value.

As you can see these stocks had an average of 6 hedge funds with bullish positions and the average amount invested in these stocks was $28 million. That figure was $33 million in TRVN’s case. Covenant Transportation Group, Inc. (NASDAQ:CVTI) is the most popular stock in this table. On the other hand Western Asset High Yield Defined Opportunity Fund Inc. (NYSE:HYI) is the least popular one with only 1 bullish hedge fund positions. Compared to these stocks Trevena Inc (NASDAQ:TRVN) 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