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.

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.