Is Xcerra Corp (XCRA) A Good Stock To Buy?

Since Xcerra Corp (NASDAQ:XCRA) has witnessed falling interest from the smart money, logic holds that there was a specific group of hedgies that slashed their positions entirely last quarter. Interestingly, Joseph A. Jolson’s Harvest Capital Strategies dumped the biggest position of the 700 funds tracked by Insider Monkey, totaling about $8.3 million in stock. Andy Redleaf’s fund, Whitebox Advisors, also sold off its stock, about $0.8 million worth. These transactions are interesting, as total hedge fund interest was cut by 3 funds last quarter.

Let’s also examine hedge fund activity in other stocks – not necessarily in the same industry as Xcerra Corp (NASDAQ:XCRA) but similarly valued. These stocks are Arrowhead Research Corp (NASDAQ:ARWR), Ocean Rig UDW Inc (NASDAQ:ORIG), Martha Stewart Living Omnimedia, Inc. (NYSE:MSO), and Mercantile Bank Corp. (NASDAQ:MBWM). This group of stocks’ market values resemble XCRA’s market value.

As you can see these stocks had an average of 10 hedge funds with bullish positions and the average amount invested in these stocks was $41 million. That figure was $49 million in XCRA’s case. Ocean Rig UDW Inc (NASDAQ:ORIG) is the most popular stock in this table. On the other hand Mercantile Bank Corp. (NASDAQ:MBWM) is the least popular one with only 5 bullish hedge fund positions. Compared to these stocks Xcerra Corp (NASDAQ:XCRA) 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.