What Do Hedge Funds Think of Accelerate Diagnostics Inc (AXDX)?

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Due to the fact that Accelerate Diagnostics Inc (NASDAQ:AXDX) has witnessed bearish sentiment from hedge fund managers, we can see that there is a sect of money managers that elected to cut their entire stakes in the third quarter. Interestingly, Drew Cupps’s Cupps Capital Management cut the largest stake of the “upper crust” of funds watched by Insider Monkey, valued at an estimated $2.8 million in stock. Richard Driehaus’s fund, Driehaus Capital, also cut its stock, about $1.7 million worth. These bearish behaviors are intriguing to say the least, as total hedge fund interest was cut by 3 funds in the third quarter.

Let’s also examine hedge fund activity in other stocks – not necessarily in the same industry as Accelerate Diagnostics Inc (NASDAQ:AXDX) but similarly valued. These stocks are National Bank Holdings Corp (NYSE:NBHC), Kronos Worldwide, Inc. (NYSE:KRO), Employers Holdings, Inc. (NYSE:EIG), and Meridian Bioscience, Inc. (NASDAQ:VIVO). This group of stocks’ market caps match AXDX’s market cap.

Ticker No of HFs with positions Total Value of HF Positions (x1000) Change in HF Position
NBHC 12 134438 1
KRO 6 1809 -1
EIG 16 57566 2
VIVO 15 44627 -2

As you can see these stocks had an average of 12.25 hedge funds with bullish positions and the average amount invested in these stocks was $60 million. That figure was $57 million in AXDX’s case. Employers Holdings, Inc. (NYSE:EIG) is the most popular stock in this table. On the other hand Kronos Worldwide, Inc. (NYSE:KRO) is the least popular one with only 6 bullish hedge fund positions. Accelerate Diagnostics Inc (NASDAQ:AXDX) 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 EIG might be a better candidate to consider a long position.

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