At Insider Monkey, we pore over the filings of nearly 867 top investment firms every quarter, a process we have now completed for the latest reporting period. The data we’ve gathered as a result gives us access to a wealth of collective knowledge based on these firms’ portfolio holdings as of September 30th. In this article, we will use that wealth of knowledge to determine whether or not Everbridge, Inc. (NASDAQ:EVBG) makes for a good investment right now.
Is Everbridge, Inc. (NASDAQ:EVBG) a buy, sell, or hold? Money managers were taking a bearish view. The number of long hedge fund bets fell by 3 recently. Everbridge, Inc. (NASDAQ:EVBG) was in 23 hedge funds’ portfolios at the end of the third quarter of 2021. The all time high for this statistic is 49. Our calculations also showed that EVBG isn’t among the 30 most popular stocks among hedge funds (click for Q3 rankings). There were 26 hedge funds in our database with EVBG holdings at the end of June.
David E. Shaw of D.E. Shaw
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 let’s view the key hedge fund action regarding Everbridge, Inc. (NASDAQ:EVBG).
Do Hedge Funds Think EVBG Is A Good Stock To Buy Now?
Heading into the fourth quarter of 2021, a total of 23 of the hedge funds tracked by Insider Monkey were bullish on this stock, a change of -12% from one quarter earlier. The graph below displays the number of hedge funds with bullish position in EVBG over the last 25 quarters. With the smart money’s capital changing hands, there exists an “upper tier” of key hedge fund managers who were increasing their holdings significantly (or already accumulated large positions).
The largest stake in Everbridge, Inc. (NASDAQ:EVBG) was held by Select Equity Group, which reported holding $574 million worth of stock at the end of September. It was followed by Sylebra Capital Management with a $303.3 million position. Other investors bullish on the company included Polar Capital, Kerrisdale Capital, and Cota Capital. In terms of the portfolio weights assigned to each position Calixto Global Investors allocated the biggest weight to Everbridge, Inc. (NASDAQ:EVBG), around 9.72% of its 13F portfolio. Sylebra Capital Management is also relatively very bullish on the stock, designating 6.83 percent of its 13F equity portfolio to EVBG.
Due to the fact that Everbridge, Inc. (NASDAQ:EVBG) has faced a decline in interest from the smart money, we can see that there was a specific group of fund managers who sold off their entire stakes heading into Q4. At the top of the heap, Richard Scott Greeder’s Broad Bay Capital sold off the largest position of all the hedgies monitored by Insider Monkey, worth about $45.2 million in stock, and Ken Griffin’s Citadel Investment Group was right behind this move, as the fund cut about $29.2 million worth. These bearish behaviors are intriguing to say the least, as total hedge fund interest was cut by 3 funds heading into Q4.
Let’s check out hedge fund activity in other stocks – not necessarily in the same industry as Everbridge, Inc. (NASDAQ:EVBG) but similarly valued. These stocks are Integra Lifesciences Holdings Corp (NASDAQ:IART), Halozyme Therapeutics, Inc. (NASDAQ:HALO), SPS Commerce, Inc. (NASDAQ:SPSC), Nextera Energy Partners LP (NYSE:NEP), Beam Therapeutics Inc. (NASDAQ:BEAM), Upwork Inc. (NASDAQ:UPWK), and New Fortress Energy LLC (NASDAQ:NFE). All of these stocks’ market caps match EVBG’s market cap.
| Ticker | No of HFs with positions | Total Value of HF Positions (x1000) | Change in HF Position |
|---|---|---|---|
| IART | 17 | 82913 | -2 |
| HALO | 23 | 179614 | 3 |
| SPSC | 17 | 178577 | -3 |
| NEP | 13 | 144605 | -9 |
| BEAM | 20 | 1244424 | -1 |
| UPWK | 35 | 418062 | 9 |
| NFE | 10 | 37286 | 1 |
| Average | 19.3 | 326497 | -0.3 |
View table here if you experience formatting issues.
As you can see these stocks had an average of 19.3 hedge funds with bullish positions and the average amount invested in these stocks was $326 million. That figure was $1308 million in EVBG’s case. Upwork Inc. (NASDAQ:UPWK) is the most popular stock in this table. On the other hand New Fortress Energy LLC (NASDAQ:NFE) is the least popular one with only 10 bullish hedge fund positions. Everbridge, Inc. (NASDAQ:EVBG) is not the most popular stock in this group but hedge fund interest is still above average. Our overall hedge fund sentiment score for EVBG is 42.1. 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 31.1% in 2021 through December 9th and beat the market again by 5.1 percentage points. Unfortunately EVBG wasn’t nearly as popular as these 5 stocks and hedge funds that were betting on EVBG were disappointed as the stock returned -23.6% since the end of September (through 12/9) 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 Everbridge Inc. (NASDAQ:EVBG)
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Disclosure: None. This article was originally published at Insider Monkey.
