Should You Avoid Cyberark Software Ltd (CYBR)?

Judging by the fact that Cyberark Software Ltd (NASDAQ:CYBR) has witnessed declining sentiment from the entirety of the hedge funds we track, it’s safe to say that there is a sect of fund managers that decided to sell off their positions entirely last quarter. At the top of the heap, Daniel Benton’s Andor Capital Management said goodbye to the biggest position of the 700 funds tracked by Insider Monkey, worth close to $15.7 million in stock, and Jim Simons’ Renaissance Technologies was right behind this move, as the fund sold off about $13.9 million worth. These moves are interesting, as aggregate hedge fund interest dropped by 2 funds last quarter.

Let’s go over hedge fund activity in other stocks similar to Cyberark Software Ltd (NASDAQ:CYBR). We will take a look at NOW Inc (NYSE:DNOW), Education Realty Trust, Inc. (NYSE:EDR), Cyberonics, Inc. (NASDAQ:CYBX), and Argo Group International Holdings, Ltd. (NASDAQ:AGII). All of these stocks’ market caps resemble CYBR’s market cap.

As you can see these stocks had an average of 16 hedge funds with bullish positions and the average amount invested in these stocks was $260 million. That figure was $152 million in CYBR’s case. Cyberonics, Inc. (NASDAQ:CYBX) is the most popular stock in this table, while Education Realty Trust, Inc. (NYSE:EDR) is the least popular one with only 8 bullish hedge fund positions. Cyberark Software Ltd (NASDAQ:CYBR) is not the most popular stock in this group, but hedge fund interest is still above average. This is a slightly positive signal, but we’d rather spend our time researching stocks that hedge funds are piling on. In this regard CYBX might be a better candidate to consider a long position.