The latest 13F reporting period has come and gone, and Insider Monkey is again at the forefront when it comes to making use of this gold mine of data. Insider Monkey finished processing 873 13F filings submitted by hedge funds and prominent investors. These filings show these funds’ portfolio positions as of June 30th, 2021. What do these smart investors think about EDAP TMS S.A. (NASDAQ:EDAP)?
Is EDAP TMS S.A. (NASDAQ:EDAP) an excellent stock to buy now? Prominent investors were buying. The number of bullish hedge fund bets increased by 2 recently. EDAP TMS S.A. (NASDAQ:EDAP) was in 10 hedge funds’ portfolios at the end of the second quarter of 2021. The all time high for this statistic is 8. This means the bullish number of hedge fund positions in this stock currently sits at its all time high. Our calculations also showed that EDAP isn’t among the 30 most popular stocks among hedge funds (click for Q2 rankings).
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 79 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.
Louis Navellier of Navellier & Associates
At Insider Monkey, we scour multiple sources to uncover the next great investment idea. 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. We read hedge fund investor letters and listen to stock pitches at hedge fund conferences. You can subscribe to our free daily newsletter on our homepage. Keeping this in mind we’re going to take a glance at the new hedge fund action encompassing EDAP TMS S.A. (NASDAQ:EDAP).
Do Hedge Funds Think EDAP Is A Good Stock To Buy Now?
At the end of June, a total of 10 of the hedge funds tracked by Insider Monkey were long this stock, a change of 25% from one quarter earlier. By comparison, 3 hedge funds held shares or bullish call options in EDAP a year ago. With hedgies’ sentiment swirling, there exists an “upper tier” of notable hedge fund managers who were increasing their stakes meaningfully (or already accumulated large positions).
The largest stake in EDAP TMS S.A. (NASDAQ:EDAP) was held by Soleus Capital, which reported holding $18.3 million worth of stock at the end of June. It was followed by AIGH Investment Partners with a $8.6 million position. Other investors bullish on the company included Rock Springs Capital Management, Archon Capital Management, and Parkman Healthcare Partners. In terms of the portfolio weights assigned to each position Soleus Capital allocated the biggest weight to EDAP TMS S.A. (NASDAQ:EDAP), around 2.81% of its 13F portfolio. AIGH Investment Partners is also relatively very bullish on the stock, designating 1.54 percent of its 13F equity portfolio to EDAP.
With a general bullishness amongst the heavyweights, key money managers were leading the bulls’ herd. Rock Springs Capital Management, managed by Kris Jenner, Gordon Bussard, Graham McPhail, initiated the most valuable position in EDAP TMS S.A. (NASDAQ:EDAP). Rock Springs Capital Management had $5.4 million invested in the company at the end of the quarter. Richard Driehaus’s Driehaus Capital also initiated a $1.4 million position during the quarter. The following funds were also among the new EDAP investors: Louis Navellier’s Navellier & Associates and Ken Griffin’s Citadel Investment Group.
Let’s check out hedge fund activity in other stocks similar to EDAP TMS S.A. (NASDAQ:EDAP). These stocks are GWG Holdings, Inc (NASDAQ:GWGH), Esports Entertainment Group Inc. (NASDAQ:GMBL), Alithya Group inc. (NASDAQ:ALYA), FVCBankcorp, Inc. (NASDAQ:FVCB), Timberland Bancorp, Inc. (NASDAQ:TSBK), Republic First Bancorp, Inc. (NASDAQ:FRBK), and Oncternal Therapeutics, Inc. (NASDAQ:ONCT). All of these stocks’ market caps are similar to EDAP’s market cap.
| Ticker | No of HFs with positions | Total Value of HF Positions (x1000) | Change in HF Position |
|---|---|---|---|
| GWGH | 1 | 277 | 1 |
| GMBL | 4 | 2284 | 0 |
| ALYA | 5 | 12665 | 1 |
| FVCB | 6 | 13664 | 3 |
| TSBK | 8 | 37334 | 2 |
| FRBK | 6 | 6105 | 0 |
| ONCT | 9 | 4871 | 0 |
| Average | 5.6 | 11029 | 1 |
View table here if you experience formatting issues.
As you can see these stocks had an average of 5.6 hedge funds with bullish positions and the average amount invested in these stocks was $11 million. That figure was $42 million in EDAP’s case. Oncternal Therapeutics, Inc. (NASDAQ:ONCT) is the most popular stock in this table. On the other hand GWG Holdings, Inc (NASDAQ:GWGH) is the least popular one with only 1 bullish hedge fund positions. Compared to these stocks EDAP TMS S.A. (NASDAQ:EDAP) is more popular among hedge funds. Our overall hedge fund sentiment score for EDAP is 87. 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. 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 25.7% in 2021 through September 27th and still beat the market by 6.2 percentage points. Unfortunately EDAP wasn’t nearly as popular as these 5 stocks and hedge funds that were betting on EDAP were disappointed as the stock returned -11.8% since the end of the second quarter (through 9/27) 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 most of these stocks already outperformed the market since 2019.
Follow Edap T M S S A (NASDAQ:EDAP)
Follow Edap T M S S A (NASDAQ:EDAP)
Suggested Articles:
- 10 Best Undervalued Stocks to Buy Now
- 10 Best Growth Stocks To Buy Now
- 11 Biggest Telecom Companies In The World
Disclosure: None. This article was originally published at Insider Monkey.
