After several tireless days we have finished crunching the numbers from nearly 900 13F filings issued by the elite hedge funds and other investment firms that we track at Insider Monkey, which disclosed those firms’ equity portfolios as of September 30th. The results of that effort will be put on display in this article, as we share valuable insight into the smart money sentiment towards Insulet Corporation (NASDAQ:PODD).
Insulet Corporation (NASDAQ:PODD) investors should pay attention to a decrease in hedge fund interest lately. Insulet Corporation (NASDAQ:PODD) was in 32 hedge funds’ portfolios at the end of the third quarter of 2021. The all time high for this statistic is 44. Our calculations also showed that PODD isn’t among the 30 most popular stocks among hedge funds (click for Q3 rankings).
Philippe Laffont of Coatue Management
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. Now we’re going to view the fresh hedge fund action surrounding Insulet Corporation (NASDAQ:PODD).
Do Hedge Funds Think PODD Is A Good Stock To Buy Now?
At Q3’s end, a total of 32 of the hedge funds tracked by Insider Monkey were long this stock, a change of -16% from the previous quarter. Below, you can check out the change in hedge fund sentiment towards PODD over the last 25 quarters. So, let’s examine which hedge funds were among the top holders of the stock and which hedge funds were making big moves.
More specifically, D1 Capital Partners was the largest shareholder of Insulet Corporation (NASDAQ:PODD), with a stake worth $376.3 million reported as of the end of September. Trailing D1 Capital Partners was Viking Global, which amassed a stake valued at $288 million. Coatue Management, Rock Springs Capital Management, and Fisher Asset Management were also very fond of the stock, becoming one of the largest hedge fund holders of the company. In terms of the portfolio weights assigned to each position Think Investments allocated the biggest weight to Insulet Corporation (NASDAQ:PODD), around 5.46% of its 13F portfolio. Rock Springs Capital Management is also relatively very bullish on the stock, dishing out 2.62 percent of its 13F equity portfolio to PODD.
Because Insulet Corporation (NASDAQ:PODD) has faced bearish sentiment from hedge fund managers, it’s easy to see that there lies a certain “tier” of hedgies that elected to cut their full holdings last quarter. At the top of the heap, Jeffrey Jay and David Kroin’s Great Point Partners dropped the largest position of all the hedgies tracked by Insider Monkey, comprising close to $28.7 million in stock, and Roberto Mignone’s Bridger Management was right behind this move, as the fund sold off about $27.5 million worth. These moves are important to note, as aggregate hedge fund interest dropped by 6 funds last quarter.
Let’s go over hedge fund activity in other stocks similar to Insulet Corporation (NASDAQ:PODD). These stocks are AMC Entertainment Holdings Inc (NYSE:AMC), DraftKings Inc. (NASDAQ:DKNG), FirstEnergy Corp. (NYSE:FE), Broadridge Financial Solutions, Inc. (NYSE:BR), SK Telecom Co., Ltd. (NYSE:SKM), Halliburton Company (NYSE:HAL), and M&T Bank Corporation (NYSE:MTB). This group of stocks’ market valuations match PODD’s market valuation.
| Ticker | No of HFs with positions | Total Value of HF Positions (x1000) | Change in HF Position |
|---|---|---|---|
| AMC | 17 | 252354 | -4 |
| DKNG | 28 | 1326732 | 2 |
| FE | 38 | 1479736 | 2 |
| BR | 17 | 229119 | -10 |
| SKM | 6 | 108281 | -2 |
| HAL | 29 | 1247608 | 0 |
| MTB | 27 | 774232 | -19 |
| Average | 23.1 | 774009 | -4.4 |
View table here if you experience formatting issues.
As you can see these stocks had an average of 23.1 hedge funds with bullish positions and the average amount invested in these stocks was $774 million. That figure was $1318 million in PODD’s case. FirstEnergy Corp. (NYSE:FE) is the most popular stock in this table. On the other hand SK Telecom Co., Ltd. (NYSE:SKM) is the least popular one with only 6 bullish hedge fund positions. Insulet Corporation (NASDAQ:PODD) is not the most popular stock in this group but hedge fund interest is still above average. Our overall hedge fund sentiment score for PODD is 61.4. 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 PODD wasn’t nearly as popular as these 5 stocks and hedge funds that were betting on PODD were disappointed as the stock returned 1.5% 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 Insulet Corp (NASDAQ:PODD)
Follow Insulet Corp (NASDAQ:PODD)
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Disclosure: None. This article was originally published at Insider Monkey.
