Is Westell Technologies Inc. (WSTL) A Micro-Cap Stock Worth Looking Into?

Earlier we told you that the aggregate hedge fund interest in the stock was unchanged and we view this as a negative development. Even though there weren’t any hedge funds dumping their holdings during the third quarter, there weren’t any hedge funds initiating brand new positions. This indicates that hedge funds, at the very best, perceive this stock as dead money and they haven’t identified any viable catalysts to attract their attention.

Let’s check out hedge fund activity in other stocks – not necessarily in the same industry as Westell Technologies Inc. (NASDAQ:WSTL) but similarly valued. These stocks are CorMedix Inc. (NYSEMKT:CRMD), NanoViricides Inc (NYSEMKT:NNVC), TearLab Corporation (NASDAQ:TEAR), and Datawatch Corporation (NASDAQ:DWCH). This group of stocks’ market valuations resemble WSTL’s market valuation.

As you can see these stocks had an average of 4 hedge funds with bullish positions and the average amount invested in these stocks was $4 million. That figure was $13 million in WSTL’s case. Datawatch Corporation (NASDAQ:DWCH) is the most popular stock in this table. On the other hand CorMedix Inc. (NYSEMKT:CRMD) is the least popular one with only 4 bullish hedge fund positions. Westell Technologies Inc. (NASDAQ:WSTL) is tied as the most popular stock in this group and has more money invested in it than any of the other stocks. This is a positive signal, despite the inactivity in the shares during Q3, and makes the stock one to consider if you’re in the market for a micro-cap stock.