Published on 21 Oct 2021 on Insider Monkey via Yahoo Finance

Is AYLA Stock A Buy Here?

In this article we are going to use hedge fund sentiment as a tool and determine whether Ayala Pharmaceuticals, Inc. (NASDAQ:AYLA) is a good investment right now. We like to analyze hedge fund sentiment before conducting days of in-depth research. We do so because hedge funds and other elite investors have numerous Ivy League graduates, expert network advisers, and supply chain tipsters working or consulting for them. There is not a shortage of news stories covering failed hedge fund investments and it is a fact that hedge funds' picks don't beat the market 100% of the time, but their consensus picks have historically done very well and have outperformed the market after adjusting for risk.

Is AYLA stock a buy? Hedge fund interest in Ayala Pharmaceuticals, Inc. (NASDAQ:AYLA) shares was flat at the end of last quarter. This is usually a negative indicator. Our calculations also showed that AYLA isn't among the 30 most popular stocks among hedge funds (click for Q1 rankings). At the end of this article we will also compare AYLA to other stocks including Apollo Endosurgery, Inc. (NASDAQ:APEN), Yatra Online, Inc. (NASDAQ:YTRA), and Safeguard Scientifics, Inc (NYSE:SFE) to get a better sense of its popularity.

Why do we pay any attention at all to hedge fund sentiment? Our research has shown that a select group of hedge fund holdings outperformed the S&P 500 ETFs by 115 percentage points since March 2017 (see the details here). That's why we believe hedge fund sentiment is an extremely useful indicator that investors should pay attention to.