Should You Buy Atara Biotherapeutics Inc (ATRA)?

As one would reasonably expect, some big names were leading the bulls’ herd. Citadel Investment Group, managed by Ken Griffin, established the most valuable position in Atara Biotherapeutics Inc (NASDAQ:ATRA). Citadel Investment Group had $0.3 million invested in the company at the end of the quarter. Glenn Russell Dubin’s Highbridge Capital Management also made an $0.3 million investment in the stock during the quarter.

Let’s now take a look at hedge fund activity in other stocks – not necessarily in the same industry as Atara Biotherapeutics Inc (NASDAQ:ATRA) but similarly valued. We will take a look at Flotek Industries Inc (NYSE:FTK), Rapid7 Inc (NASDAQ:RPD), Globe Specialty Metals, Inc. (NASDAQ:GSM), and Astronics Corporation (NASDAQ:ATRO). This group of stocks’ market caps are similar to ATRA’s market cap.

As you can see these stocks had an average of 15 hedge funds with bullish positions and the average amount invested in these stocks was $115 million. That figure was $294 million in ATRA’s case. Globe Specialty Metals, Inc. (NASDAQ:GSM) is the most popular stock in this table. On the other hand Rapid7 Inc (NASDAQ:RPD) is the least popular one with only 5 bullish hedge fund positions. Atara Biotherapeutics Inc (NASDAQ:ATRA) 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 GSM might be a better candidate to consider a long position.