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. We at Insider Monkey have plowed through 867 13F filings that hedge funds and well-known value 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 investors think of PerkinElmer, Inc. (NYSE:PKI).
Is PerkinElmer, Inc. (NYSE:PKI) worth your attention right now? The best stock pickers were getting less optimistic. The number of bullish hedge fund positions were trimmed by 1 lately. PerkinElmer, Inc. (NYSE:PKI) was in 31 hedge funds’ portfolios at the end of the third quarter of 2021. The all time high for this statistic is 36. Our calculations also showed that PKI isn’t among the 30 most popular stocks among hedge funds (click for Q3 rankings). There were 32 hedge funds in our database with PKI positions at the end of the second quarter.
Richard Driehaus of Driehaus 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. Keeping this in mind we’re going to take a gander at the recent hedge fund action encompassing PerkinElmer, Inc. (NYSE:PKI).
Do Hedge Funds Think PKI Is A Good Stock To Buy Now?
At the end of the third quarter, a total of 31 of the hedge funds tracked by Insider Monkey were bullish on this stock, a change of -3% from the previous quarter. By comparison, 36 hedge funds held shares or bullish call options in PKI a year ago. With hedge funds’ positions undergoing their usual ebb and flow, there exists a select group of noteworthy hedge fund managers who were boosting their stakes substantially (or already accumulated large positions).
The largest stake in PerkinElmer, Inc. (NYSE:PKI) was held by Select Equity Group, which reported holding $1298.8 million worth of stock at the end of September. It was followed by Impax Asset Management with a $193.6 million position. Other investors bullish on the company included Echo Street Capital Management, AQR Capital Management, and Balyasny Asset Management. In terms of the portfolio weights assigned to each position Select Equity Group allocated the biggest weight to PerkinElmer, Inc. (NYSE:PKI), around 4.36% of its 13F portfolio. Integral Health Asset Management is also relatively very bullish on the stock, earmarking 2.49 percent of its 13F equity portfolio to PKI.
Since PerkinElmer, Inc. (NYSE:PKI) has witnessed declining sentiment from the entirety of the hedge funds we track, logic holds that there was a specific group of funds that decided to sell off their entire stakes last quarter. Interestingly, Ken Griffin’s Citadel Investment Group said goodbye to the biggest investment of the “upper crust” of funds tracked by Insider Monkey, comprising about $51.3 million in stock, and Jaime Sterne’s Skye Global Management was right behind this move, as the fund dropped about $1.7 million worth. These bearish behaviors are intriguing to say the least, as total hedge fund interest was cut by 1 funds last quarter.
Let’s also examine hedge fund activity in other stocks – not necessarily in the same industry as PerkinElmer, Inc. (NYSE:PKI) but similarly valued. These stocks are International Paper Company (NYSE:IP), Kellogg Company (NYSE:K), KE Holdings Inc (NYSE:BEKE), Ventas, Inc. (NYSE:VTR), McCormick & Company, Incorporated (NYSE:MKC), DTE Energy Company (NYSE:DTE), and FleetCor Technologies, Inc. (NYSE:FLT). This group of stocks’ market values are closest to PKI’s market value.
| Ticker | No of HFs with positions | Total Value of HF Positions (x1000) | Change in HF Position |
|---|---|---|---|
| IP | 30 | 263108 | -1 |
| K | 22 | 290019 | -10 |
| BEKE | 26 | 1740683 | -5 |
| VTR | 23 | 464641 | -2 |
| MKC | 35 | 1782097 | 1 |
| DTE | 22 | 426119 | -10 |
| FLT | 31 | 2095712 | -9 |
| Average | 27 | 1008911 | -5.1 |
View table here if you experience formatting issues.
As you can see these stocks had an average of 27 hedge funds with bullish positions and the average amount invested in these stocks was $1009 million. That figure was $1921 million in PKI’s case. McCormick & Company, Incorporated (NYSE:MKC) is the most popular stock in this table. On the other hand Kellogg Company (NYSE:K) is the least popular one with only 22 bullish hedge fund positions. PerkinElmer, Inc. (NYSE:PKI) is not the most popular stock in this group but hedge fund interest is still above average. Our overall hedge fund sentiment score for PKI is 64.4. 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 PKI wasn’t nearly as popular as these 5 stocks and hedge funds that were betting on PKI were disappointed as the stock returned 5.2% 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 Revvity Inc. (NYSE:RVTY)
Follow Revvity Inc. (NYSE:RVTY)
Suggested Articles:
- 50 Most Beautiful Cities in the US
- 10 Most Profitable Movies Of All Time
- 10 Best Wind Energy and Renewables Stocks to Buy in 2021
Disclosure: None. This article was originally published at Insider Monkey.
