Should You Buy Avid Technology, Inc. (AVID)?

It’s worth mentioning that Israel Englander’s Millennium Management cut the largest stake of all the hedgies monitored by Insider Monkey, worth about $2.3 million in stock, and Amy Minella’s Cardinal Capital was right behind this move, as the fund cut about $1.4 million worth. These transactions are interesting, as total hedge fund interest stayed the same (this is a bearish signal in our experience).

Let’s check out hedge fund activity in other stocks – not necessarily in the same industry as Avid Technology, Inc. (NASDAQ:AVID) but similarly valued. We will take a look at National Storage Affiliates Trust (NYSE:NSA), Phoenix New Media Ltd ADR (NYSE:FENG), Whitestone REIT (NYSE:WSR), and NanoString Technologies Inc (NASDAQ:NSTG). This group of stocks’ market valuations are closest to AVID’s market valuation.

Ticker No of HFs with positions Total Value of HF Positions (x1000) Change in HF Position
NSA 11 85632 4
FENG 5 21107 -2
WSR 9 13150 1
NSTG 11 91320 0

As you can see these stocks had an average of 9 hedge funds with bullish positions and the average amount invested in these stocks was $53 million. That figure was $104 million in AVID’s case. National Storage Affiliates Trust (NYSE:NSA) is the most popular stock in this table. On the other hand Phoenix New Media Ltd ADR (NYSE:FENG) is the least popular one with only 5 bullish hedge fund positions. Compared to these stocks Avid Technology, Inc. (NASDAQ:AVID) is more popular among hedge funds. Considering that hedge funds are fond of this stock in relation to its market cap peers, it may be a good idea to analyze it in detail and potentially include it in your portfolio.