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 866 world-class investment firms that we track and now have access to the collective wisdom contained in these filings, which are based on their March 31st holdings, data that is available nowhere else. Should you consider Domo Inc. (NASDAQ:DOMO) for your portfolio? We’ll look to this invaluable collective wisdom for the answer.
Is Domo Inc. (NASDAQ:DOMO) a first-rate stock to buy now? Money managers were becoming hopeful. The number of bullish hedge fund bets rose by 5 lately. Domo Inc. (NASDAQ:DOMO) was in 27 hedge funds’ portfolios at the end of the first quarter of 2021. The all time high for this statistic was previously 24. This means the bullish number of hedge fund positions in this stock currently sits at its all time high. Our calculations also showed that DOMO isn’t among the 30 most popular stocks among hedge funds (click for Q1 rankings). There were 22 hedge funds in our database with DOMO holdings at the end of December.
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David Atterbury of Whetstone Capital Advisors
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Do Hedge Funds Think DOMO Is A Good Stock To Buy Now?
At the end of the first quarter, a total of 27 of the hedge funds tracked by Insider Monkey were bullish on this stock, a change of 23% from the previous quarter. By comparison, 15 hedge funds held shares or bullish call options in DOMO a year ago. So, let’s examine which hedge funds were among the top holders of the stock and which hedge funds were making big moves.
Among these funds, Whetstone Capital Advisors held the most valuable stake in Domo Inc. (NASDAQ:DOMO), which was worth $44 million at the end of the fourth quarter. On the second spot was Two Sigma Advisors which amassed $28.3 million worth of shares. Renaissance Technologies, Schonfeld Strategic Advisors, and Collaborative Holdings 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 Collaborative Holdings Management allocated the biggest weight to Domo Inc. (NASDAQ:DOMO), around 11.88% of its 13F portfolio. Whetstone Capital Advisors is also relatively very bullish on the stock, earmarking 9.28 percent of its 13F equity portfolio to DOMO.
As industrywide interest jumped, key hedge funds were breaking ground themselves. Balyasny Asset Management, managed by Dmitry Balyasny, initiated the most valuable position in Domo Inc. (NASDAQ:DOMO). Balyasny Asset Management had $17.5 million invested in the company at the end of the quarter. Richard SchimeláandáLawrence Sapanski’s Cinctive Capital Management also initiated a $4.9 million position during the quarter. The following funds were also among the new DOMO investors: Philip Hempleman’s Ardsley Partners, Paul Tudor Jones’s Tudor Investment Corp, and Paul Marshall and Ian Wace’s Marshall Wace LLP.
Let’s now take a look at hedge fund activity in other stocks – not necessarily in the same industry as Domo Inc. (NASDAQ:DOMO) but similarly valued. We will take a look at WestAmerica Bancorp. (NASDAQ:WABC), Huaneng Power International Inc (NYSE:HNP), Genworth Financial Inc (NYSE:GNW), American Woodmark Corporation (NASDAQ:AMWD), Great Western Bancorp Inc (NYSE:GWB), SEMrush Holdings, Inc. (NYSE:SEMR), and Aurinia Pharmaceuticals Inc (NASDAQ:AUPH). This group of stocks’ market caps match DOMO’s market cap.
| Ticker | No of HFs with positions | Total Value of HF Positions (x1000) | Change in HF Position |
|---|---|---|---|
| WABC | 13 | 23514 | -1 |
| HNP | 4 | 3602 | 2 |
| GNW | 24 | 186139 | -12 |
| AMWD | 14 | 51358 | 3 |
| GWB | 13 | 28756 | 0 |
| SEMR | 20 | 57490 | 20 |
| AUPH | 27 | 224594 | 3 |
| Average | 16.4 | 82208 | 2.1 |
View table here if you experience formatting issues.
As you can see these stocks had an average of 16.4 hedge funds with bullish positions and the average amount invested in these stocks was $82 million. That figure was $273 million in DOMO’s case. Aurinia Pharmaceuticals Inc (NASDAQ:AUPH) is the most popular stock in this table. On the other hand Huaneng Power International Inc (NYSE:HNP) is the least popular one with only 4 bullish hedge fund positions. Domo Inc. (NASDAQ:DOMO) is not the most popular stock in this group but hedge fund interest is still above average. Our overall hedge fund sentiment score for DOMO is 90. 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 24% in 2021 through July 9th and still beat the market by 6.7 percentage points. Hedge funds were also right about betting on DOMO as the stock returned 46.3% since the end of Q1 (through 7/9) and outperformed the market. Hedge funds were rewarded for their relative bullishness.
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Disclosure: None. This article was originally published at Insider Monkey.
