Is SeaSpine Holdings Corp (SPNE) a Good Stock to Buy?

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Since SeaSpine Holdings Corp (NASDAQ:SPNE) has weathered falling interest from the entirety of the hedge funds we track, logic holds that there was a specific group of money managers that elected to cut their full holdings last quarter. It’s worth mentioning that Ken Fisher’s Fisher Asset Management dumped the largest investment of the “upper crust” of funds studied by Insider Monkey, worth an estimated $1.8 million in stock. Benjamin A. Smith’s fund, Laurion Capital Management, also dropped its stock, about $0.3 million worth.

Let’s now take a look at hedge fund activity in other stocks – not necessarily in the same industry as SeaSpine Holdings Corp (NASDAQ:SPNE) but similarly valued. These stocks are Rick’s Cabaret Int’l, Inc (NASDAQ:RICK), Sears Hometown and Outlet Stores Inc (NASDAQ:SHOS), Exeter Resource Corp. (NYSEAMEX:XRA), and BRT Realty Trust (NYSE:BRT). This group of stocks’ market values resemble SPNE’s market value.

Ticker No of HFs with positions Total Value of HF Positions (x1000) Change in HF Position
RICK 3 4451 -1
SHOS 11 45403 -2
XRA 4 16543 0
BRT 4 12920 0

As you can see these stocks had an average of 5 hedge funds with bullish positions and the average amount invested in these stocks was $20 million. That figure was $45 million in SPNE’s case. Sears Hometown and Outlet Stores Inc (NASDAQ:SHOS) is the most popular stock in this table. On the other hand Rick’s Cabaret Int’l, Inc (NASDAQ:RICK) is the least popular one with only 3 bullish hedge fund positions. SeaSpine Holdings Corp (NASDAQ:SPNE) 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 SHOS might be a better candidate to consider taking a long position in.

Disclosure: None


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