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Petmed Express Inc (PETS): Are Hedge Funds Right About This Stock?

Seeing as Petmed Express Inc (NASDAQ:PETS) has faced a declination in interest from the entirety of the hedge funds we track, logic holds that there exists a select few money managers who sold off their full holdings heading into Q4. At the top of the heap, Matthew Hulsizer’s PEAK6 Capital Management dropped the biggest investment of the 700 funds watched by Insider Monkey, worth an estimated $0.6 million in stock, and Peter Rathjens, Bruce Clarke and John Campbell’s Arrowstreet Capital was right behind this move, as the fund said goodbye to about $0.4 million worth. These bearish behaviors are interesting, as aggregate hedge fund interest was cut by 1 funds heading into Q4.

Let’s go over hedge fund activity in other stocks – not necessarily in the same industry as Petmed Express Inc (NASDAQ:PETS) but similarly valued. These stocks are RTI Biologics Inc. (NASDAQ:RTIX), Neovasc Inc. (NASDAQ:NVCN), Baldwin & Lyons Inc (NASDAQ:BWINB), and Del Frisco’s Restaurant Group Inc (NASDAQ:DFRG). This group of stocks’ market values match PETS’s market value.

Ticker No of HFs with positions Total Value of HF Positions (x1000) Change in HF Position
RTIX 16 44325 0
NVCN 7 27280 1
BWINB 5 54221 0
DFRG 23 84739 6

As you can see these stocks had an average of 13 hedge funds with bullish positions and the average amount invested in these stocks was $53 million. That figure was $42 million in PETS’s case. Del Frisco’s Restaurant Group Inc (NASDAQ:DFRG) is the most popular stock in this table. On the other hand, Baldwin & Lyons Inc (NASDAQ:BWINB) is the least popular one with only 5 bullish hedge fund positions. Petmed Express Inc (NASDAQ:PETS) 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 DFRG might be a better candidate to consider a long position.

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