Silver Spring Networks Inc (SSNI): Are Hedge Funds Right About This Stock?

Seeing as Silver Spring Networks Inc (NYSE:SSNI) has sustained declining sentiment from the aggregate hedge fund industry, it’s safe to say that there lies a certain “tier” of funds that decided to sell off their full holdings in the third quarter. It’s worth mentioning that Glenn Russell Dubin’s Highbridge Capital Management dropped the largest position of all the hedgies watched by Insider Monkey, worth close to $0.5 million in stock. David Costen Haley’s fund, HBK Investments, also dumped its stock, about $0.4 million worth.

Let’s go over hedge fund activity in other stocks similar to Silver Spring Networks Inc (NYSE:SSNI). These stocks are SPX Corporation (NYSE:SPXC), Five9 Inc (NASDAQ:FIVN), Hortonworks Inc (NASDAQ:HDP), and Seacoast Banking Corporation of Florida (NASDAQ:SBCF). All of these stocks’ market caps are similar to SSNI’s market cap.

Ticker No of HFs with positions Total Value of HF Positions (x1000) Change in HF Position
SPXC 18 108570 -3
FIVN 23 116555 7
HDP 14 91351 4
SBCF 14 80125 1

As you can see these stocks had an average of 17.25 hedge funds with bullish positions and the average amount invested in these stocks was $99 million. That figure was $26 million in SSNI’s case. Five9 Inc (NASDAQ:FIVN) is the most popular stock in this table. On the other hand Hortonworks Inc (NASDAQ:HDP) is the least popular one with only 14 bullish hedge fund positions. Compared to these stocks Silver Spring Networks Inc (NYSE:SSNI) is even less popular than HDP. Considering that hedge funds aren’t fond of this stock in relation to other companies analyzed in this article, it may be a good idea to analyze it in detail and understand why the smart money isn’t behind this stock. This isn’t necessarily bad news. Although it is possible that hedge funds may think the stock is overpriced and view the stock as a short candidate, they may not be very familiar with the bullish thesis. In either case more research is warranted.

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Disclosure: None