We at Insider Monkey have gone over 867 13F filings that hedge funds and prominent investors are required to file by the SEC. The 13F filings show the funds’ and investors’ portfolio positions as of September 30th. In this article, we look at what those funds think of Envista Holdings Corporation (NYSE:NVST) based on that data.
Envista Holdings Corporation (NYSE:NVST) investors should be aware of a decrease in hedge fund interest lately. Envista Holdings Corporation (NYSE:NVST) was in 33 hedge funds’ portfolios at the end of the third quarter of 2021. The all time high for this statistic is 42. Our calculations also showed that NVST isn’t among the 30 most popular stocks among hedge funds (click for Q3 rankings).
Jeffrey Gates of Gates Capital
At Insider Monkey, we scour multiple sources to uncover the next great investment idea. For example, lithium prices have more than doubled over the past year, so we go through lists like the 10 best EV stocks to pick the next Tesla that will deliver a 10x return. Even though we recommend positions in only a tiny fraction of the companies we analyze, we check out as many stocks as we can. With all of this in mind we’re going to analyze the new hedge fund action regarding Envista Holdings Corporation (NYSE:NVST).
Do Hedge Funds Think NVST Is A Good Stock To Buy Now?
At the end of September, a total of 33 of the hedge funds tracked by Insider Monkey were bullish on this stock, a change of -13% from one quarter earlier. Below, you can check out the change in hedge fund sentiment towards NVST over the last 25 quarters. So, let’s check out which hedge funds were among the top holders of the stock and which hedge funds were making big moves.
More specifically, Ariel Investments was the largest shareholder of Envista Holdings Corporation (NYSE:NVST), with a stake worth $254.4 million reported as of the end of September. Trailing Ariel Investments was Citadel Investment Group, which amassed a stake valued at $134.3 million. Paradice Investment Management, Healthcor Management LP, and Polar Capital were also very fond of the stock, becoming one of the largest hedge fund holders of the company. In terms of the portfolio weights assigned to each position Iron Triangle Partners allocated the biggest weight to Envista Holdings Corporation (NYSE:NVST), around 8.81% of its 13F portfolio. Paradice Investment Management is also relatively very bullish on the stock, designating 4.69 percent of its 13F equity portfolio to NVST.
Judging by the fact that Envista Holdings Corporation (NYSE:NVST) has faced falling interest from the entirety of the hedge funds we track, it’s easy to see that there lies a certain “tier” of hedgies that elected to cut their full holdings in the third quarter. It’s worth mentioning that Israel Englander’s Millennium Management sold off the biggest investment of the 750 funds followed by Insider Monkey, totaling about $15.1 million in stock, and Franklin Parlamis’s Aequim Alternative Investments was right behind this move, as the fund sold off about $10.7 million worth. These bearish behaviors are interesting, as total hedge fund interest dropped by 5 funds in the third quarter.
Let’s check out hedge fund activity in other stocks similar to Envista Holdings Corporation (NYSE:NVST). These stocks are American Campus Communities, Inc. (NYSE:ACC), Eastgroup Properties Inc (NYSE:EGP), Toll Brothers Inc (NYSE:TOL), First Industrial Realty Trust, Inc. (NYSE:FR), Euronet Worldwide, Inc. (NASDAQ:EEFT), ADT Inc. (NYSE:ADT), and Marriott Vacations Worldwide Corporation (NYSE:VAC). This group of stocks’ market valuations are similar to NVST’s market valuation.
| Ticker | No of HFs with positions | Total Value of HF Positions (x1000) | Change in HF Position |
|---|---|---|---|
| ACC | 17 | 147769 | -4 |
| EGP | 13 | 200703 | 2 |
| TOL | 31 | 705647 | -1 |
| FR | 25 | 252097 | 3 |
| EEFT | 38 | 379793 | -2 |
| ADT | 18 | 335536 | -3 |
| VAC | 23 | 751056 | -12 |
| Average | 23.6 | 396086 | -2.4 |
View table here if you experience formatting issues.
As you can see these stocks had an average of 23.6 hedge funds with bullish positions and the average amount invested in these stocks was $396 million. That figure was $1073 million in NVST’s case. Euronet Worldwide, Inc. (NASDAQ:EEFT) is the most popular stock in this table. On the other hand Eastgroup Properties Inc (NYSE:EGP) is the least popular one with only 13 bullish hedge fund positions. Envista Holdings Corporation (NYSE:NVST) is not the most popular stock in this group but hedge fund interest is still above average. Our overall hedge fund sentiment score for NVST is 63.6. Stocks with higher number of hedge fund positions relative to other stocks as well as relative to their historical range receive a higher sentiment score. This is a slightly positive signal but we’d rather spend our time researching stocks that hedge funds are piling on. Our calculations showed that top 5 most popular stocks among hedge funds returned 95.8% in 2019 and 2020, and outperformed the S&P 500 ETF (SPY) by 40 percentage points. These stocks gained 28.6% in 2021 through November 30th and beat the market again by 5.6 percentage points. Unfortunately NVST wasn’t nearly as popular as these 5 stocks and hedge funds that were betting on NVST were disappointed as the stock returned -7.2% since the end of September (through 11/30) and underperformed the market. If you are interested in investing in large cap stocks with huge upside potential, you should check out the top 5 most popular stocks among hedge funds as many of these stocks already outperformed the market since 2019.
Follow Envista Holdings Corp (NYSE:NVST)
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Disclosure: None. This article was originally published at Insider Monkey.
