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 have processed the filings of the more than 867 world-class investment firms that we track and now have access to the collective wisdom contained in these filings, which are based on their September 30th holdings, data that is available nowhere else. Should you consider Nordson Corporation (NASDAQ:NDSN) for your portfolio? We’ll look to this invaluable collective wisdom for the answer.
Nordson Corporation (NASDAQ:NDSN) investors should pay attention to a decrease in enthusiasm from smart money of late. Nordson Corporation (NASDAQ:NDSN) was in 29 hedge funds’ portfolios at the end of the third quarter of 2021. The all time high for this statistic is 34. Our calculations also showed that NDSN isn’t among the 30 most popular stocks among hedge funds (click for Q3 rankings).
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 view the recent hedge fund action regarding Nordson Corporation (NASDAQ:NDSN).
Dmitry Balyasny of Balyasny Asset Management
Do Hedge Funds Think NDSN Is A Good Stock To Buy Now?
At third quarter’s end, a total of 29 of the hedge funds tracked by Insider Monkey were bullish on this stock, a change of -15% from the previous quarter. By comparison, 21 hedge funds held shares or bullish call options in NDSN a year ago. With hedge funds’ capital changing hands, there exists a few notable hedge fund managers who were adding to their holdings significantly (or already accumulated large positions).
The largest stake in Nordson Corporation (NASDAQ:NDSN) was held by Citadel Investment Group, which reported holding $77.5 million worth of stock at the end of September. It was followed by AQR Capital Management with a $54.3 million position. Other investors bullish on the company included Greenhouse Funds, Millennium Management, and Balyasny Asset Management. In terms of the portfolio weights assigned to each position Greenhouse Funds allocated the biggest weight to Nordson Corporation (NASDAQ:NDSN), around 4.52% of its 13F portfolio. Prescott Group Capital Management is also relatively very bullish on the stock, earmarking 0.52 percent of its 13F equity portfolio to NDSN.
Due to the fact that Nordson Corporation (NASDAQ:NDSN) has experienced declining sentiment from the entirety of the hedge funds we track, logic holds that there were a few hedgies that elected to cut their positions entirely last quarter. Interestingly, Robert Joseph Caruso’s Select Equity Group said goodbye to the biggest stake of all the hedgies followed by Insider Monkey, worth about $35.8 million in stock, and Ray Dalio’s Bridgewater Associates was right behind this move, as the fund dropped about $4.4 million worth. These transactions are intriguing to say the least, as total hedge fund interest fell by 5 funds last quarter.
Let’s now take a look at hedge fund activity in other stocks similar to Nordson Corporation (NASDAQ:NDSN). These stocks are W.P. Carey Inc. (NYSE:WPC), Lightspeed Commerce Inc. (NYSE:LSPD), Masco Corporation (NYSE:MAS), News Corp (NASDAQ:NWS), Lumen Technologies, Inc. (NYSE:LUMN), Eastman Chemical Company (NYSE:EMN), and Elastic N.V. (NYSE:ESTC). This group of stocks’ market caps match NDSN’s market cap.
| Ticker | No of HFs with positions | Total Value of HF Positions (x1000) | Change in HF Position |
|---|---|---|---|
| WPC | 24 | 142763 | -5 |
| LSPD | 26 | 631903 | -3 |
| MAS | 29 | 528895 | -6 |
| NWS | 13 | 130888 | -6 |
| LUMN | 25 | 941373 | -8 |
| EMN | 30 | 254650 | 3 |
| ESTC | 59 | 2985926 | 4 |
| Average | 29.4 | 802343 | -3 |
View table here if you experience formatting issues.
As you can see these stocks had an average of 29.4 hedge funds with bullish positions and the average amount invested in these stocks was $802 million. That figure was $311 million in NDSN’s case. Elastic N.V. (NYSE:ESTC) is the most popular stock in this table. On the other hand News Corp (NASDAQ:NWS) is the least popular one with only 13 bullish hedge fund positions. Nordson Corporation (NASDAQ:NDSN) is not the least popular stock in this group but hedge fund interest is still below average. Our overall hedge fund sentiment score for NDSN is 43. 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 28.6% in 2021 through November 30th and still beat the market by 5.6 percentage points. A small number of hedge funds were also right about betting on NDSN as the stock returned 6.7% since the end of the third quarter (through 11/30) and outperformed the market by an even larger margin.
Follow Nordson Corp (NASDAQ:NDSN)
Follow Nordson Corp (NASDAQ:NDSN)
Suggested Articles:
- 30 Dividend Kings of 2021 (Part I)
- 20 Best Countries To Live Considering Climate Change
- 10 Best Blockchain Stocks to Buy
Disclosure: None. This article was originally published at Insider Monkey.
