Veracyte Inc (VCYT): Are Hedge Funds Right About This Stock?

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Consequently, some big names have jumped into Veracyte Inc (NASDAQ:VCYT) headfirst, including Matthew Strobeck’s Birchview Capital, which made a $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 Veracyte Inc (NASDAQ:VCYT) but similarly valued. We will take a look at Flex Pharma Inc (NASDAQ:FLKS), Black Box Corporation (NASDAQ:BBOX), DRDGOLD Ltd. (ADR) (NYSE:DRD), and Lee Enterprises, Incorporated (NYSE:LEE). All of these stocks’ market caps are closest to VCYT’s market cap.

Ticker No of HFs with positions Total Value of HF Positions (x1000) Change in HF Position
FLKS 4 1968 -3
BBOX 10 17647 1
DRD 6 12883 2
LEE 10 8969 1

As you can see these stocks had an average of 7.5 hedge funds with bullish positions and the average amount invested in these stocks was $10 million. That figure was $18 million in VCYT’s case. Black Box Corporation (NASDAQ:BBOX) is the most popular stock in this table. On the other hand Flex Pharma Inc (NASDAQ:FLKS) is the least popular one with only 4 bullish hedge fund positions. Veracyte Inc (NASDAQ:VCYT) 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 BBOX might be a better candidate to consider taking a long position in.

Disclosure: None


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