Although there is no fundamental news concerning the stock, EXACT Sciences Corporation (NASDAQ:EXAS) could be the beneficiary of some technical buying today. Because shares of EXACT Sciences Corporation (NASDAQ:EXAS) have been beaten up very badly over the last 12 months, it could be the beneficiary of some short covering as the stock trades closer and closer to its book value of around $3 per share. The stock could also be responding to analyst price targets, which have averaged higher than the company’s current price. In February, the analyst at Goldman Sachs set a price target of $7 per share. The analyst at Mizuho set a price target of $6.50 per share in May. Shares of EXACT are up 8% so far today, which is good news for investors that amassed substantial positions in the company.
EXACT Sciences Corporation (NASDAQ:EXAS) was in 16 hedge funds’ portfolios at the end of March. EXAS shareholders have witnessed a decrease in enthusiasm from smart money in recent months. There were 20 hedge funds in our database with EXAS positions at the end of the previous quarter. The level and the change in hedge fund popularity aren’t the only variables you need to analyze to decipher hedge funds’ perspectives. A stock may witness a boost in popularity, but it may still be less popular than similarly priced stocks. That’s why at the end of this article we will examine companies such as Sunrun Inc (NASDAQ:RUN), Virtus Investment Partners Inc (NASDAQ:VRTS), and CalAmp Corp. (NASDAQ:CAMP) to gather more data points.
Follow Exact Sciences Corp (NASDAQ:EXAS)
Follow Exact Sciences Corp (NASDAQ:EXAS)
According to most traders, hedge funds are assumed to be worthless, outdated investment vehicles of yesteryear. While there are over 8000 funds trading today, Our experts choose to focus on the moguls of this group, around 700 funds. It is estimated that this group of investors administers the lion’s share of the smart money’s total asset base, and by tracking their finest equity investments, Insider Monkey has brought to light numerous investment strategies that have historically outrun the broader indices. Insider Monkey’s small-cap hedge fund strategy exceeded the S&P 500 index by 12 percentage points per annum for a decade in their back tests.
Now, we’re going to check out the recent action regarding EXACT Sciences Corporation (NASDAQ:EXAS).
Of the funds tracked by Insider Monkey, billionaire David E. Shaw’s D. E. Shaw holds the number one position in EXACT Sciences Corporation (NASDAQ:EXAS). D E Shaw has a $22.1 million position in the stock, comprising less than 0.1% of its 13F portfolio. On D E Shaw’s heels is Israel Englander’s Millennium Management, which holds a $12.9 million position. Some other members of the smart money that are bullish contain Samuel Isaly’s OrbiMed Advisors, Spencer M. Waxman’s Shannon River Fund Management and Steve Cohen’s Point72 Asset Management.
Since EXACT Sciences Corporation (NASDAQ:EXAS) has experienced falling interest from the aggregate hedge fund industry, logic holds that there lies a certain “tier” of hedgies who were dropping their full holdings heading into Q2. At the top of the heap, Roberto Mignone’s Bridger Management dumped the biggest stake of the “upper crust” of funds followed by Insider Monkey, totaling about $14.2 million in stock. Philippe Laffont’s fund, Coatue Management, also dumped its stock, about $10.4 million worth. These moves are interesting, as total hedge fund interest was cut by 4 funds heading into Q2.
Let’s now review hedge fund activity in other stocks – not necessarily in the same industry as EXACT Sciences Corporation (NASDAQ:EXAS) but similarly valued. We will take a look at Sunrun Inc (NASDAQ:RUN), Virtus Investment Partners Inc (NASDAQ:VRTS), CalAmp Corp. (NASDAQ:CAMP), and ICF International Inc (NASDAQ:ICFI). This group of stocks’ market valuations are closest to EXAS’s market valuation.
| Ticker | No of HFs with positions | Total Value of HF Positions (x1000) | Change in HF Position |
|---|---|---|---|
| RUN | 13 | 105446 | -2 |
| VRTS | 9 | 85290 | 1 |
| CAMP | 15 | 37928 | -1 |
| ICFI | 13 | 50253 | 0 |
As you can see these stocks had an average of 13 hedge funds with bullish positions and the average amount invested in these stocks was $70 million. That figure was $74 million in EXAS’s case. CalAmp Corp. (NASDAQ:CAMP) is the most popular stock in this table. On the other hand Virtus Investment Partners Inc (NASDAQ:VRTS) is the least popular one with only 9 bullish hedge fund positions. Compared to these stocks EXACT Sciences Corporation (NASDAQ:EXAS) 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.
Disclosure: None
