Puma Biotechnology Inc (PBYI): Are Hedge Funds Right About This Stock?

Seeing as Puma Biotechnology Inc (NYSE:PBYI) has faced bearish sentiment from the aggregate hedge fund industry, it’s safe to say that there exists a select few fund managers who were dropping their entire stakes heading into Q4. Intriguingly, Joseph Edelman’s Perceptive Advisors said goodbye to the biggest stake of the “upper crust” of funds tracked by Insider Monkey, valued at about $11.7 million in stock, and Zach Schreiber’s Point State Capital was right behind this move, as the fund dropped about $4.7 million worth. These bearish behaviors are intriguing to say the least, as aggregate hedge fund interest fell by 11 funds heading into Q4.

Let’s go over hedge fund activity in other stocks – not necessarily in the same industry as Puma Biotechnology Inc (NYSE:PBYI) but similarly valued. These stocks are United Natural Foods, Inc. (NASDAQ:UNFI), Sinclair Broadcast Group, Inc. (NASDAQ:SBGI), Tech Data Corp (NASDAQ:TECD), and AMAYA INC (NASDAQ:AYA). All of these stocks’ market caps resemble PBYI’s market cap.

As you can see these stocks had an average of 22.5 hedge funds with bullish positions and the average amount invested in these stocks was $397 million. That figure was $760 million in PBYI’s case. Sinclair Broadcast Group, Inc. (NASDAQ:SBGI) is the most popular stock in this table. On the other hand United Natural Foods, Inc. (NASDAQ:UNFI) is the least popular one with only 16 bullish hedge fund positions. Puma Biotechnology Inc (NYSE:PBYI) 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 SBGI might be a better candidate to consider a long position.