Here is What Hedge Funds Think About Alteryx, Inc. (AYX)

Hedge Funds and other institutional investors have just completed filing their 13Fs with the Securities and Exchange Commission, revealing their equity portfolios as of the end of September. At Insider Monkey, we follow nearly 900 active hedge funds and notable investors and by analyzing their 13F filings, we can determine the stocks that they are collectively bullish on. One of their picks is Alteryx, Inc. (NYSE:AYX), so let’s take a closer look at the sentiment that surrounds it in the current quarter.

Is Alteryx, Inc. (NYSE:AYX) a buy here? Money managers were turning bullish. The number of long hedge fund bets inched up by 4 in recent months. Alteryx, Inc. (NYSE:AYX) was in 37 hedge funds’ portfolios at the end of September. The all time high for this statistic is 48. Our calculations also showed that AYX isn’t among the 30 most popular stocks among hedge funds (click for Q3 rankings). There were 33 hedge funds in our database with AYX positions at the end of the second quarter.

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 let’s review the new hedge fund action encompassing Alteryx, Inc. (NYSE:AYX).

Colin Moran of Abdiel Capital Advisors

Do Hedge Funds Think AYX Is A Good Stock To Buy Now?

At Q3’s end, a total of 37 of the hedge funds tracked by Insider Monkey held long positions in this stock, a change of 12% from one quarter earlier. The graph below displays the number of hedge funds with bullish position in AYX over the last 25 quarters. So, let’s check out which hedge funds were among the top holders of the stock and which hedge funds were making big moves.

More specifically, Bares Capital Management was the largest shareholder of Alteryx, Inc. (NYSE:AYX), with a stake worth $342.5 million reported as of the end of September. Trailing Bares Capital Management was Alkeon Capital Management, which amassed a stake valued at $145.9 million. Abdiel Capital Advisors, Citadel Investment Group, and Washington Harbour Partners 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 Akaris Global Partners allocated the biggest weight to Alteryx, Inc. (NYSE:AYX), around 10.89% of its 13F portfolio. Akaris Global Partners is also relatively very bullish on the stock, designating 6.78 percent of its 13F equity portfolio to AYX.

Consequently, specific money managers were breaking ground themselves. Washington Harbour Partners, managed by Mina Faltas, initiated the largest position in Alteryx, Inc. (NYSE:AYX). Washington Harbour Partners had $51.8 million invested in the company at the end of the quarter. Asad Rahman and Aman Kapadia’s Akaris Global Partners also made a $11 million investment in the stock during the quarter. The other funds with new positions in the stock are Israel Englander’s Millennium Management, Michael Cowley’s Sandbar Asset Management, and Phill Gross and Robert Atchinson’s Adage Capital Management.

Let’s now take a look at hedge fund activity in other stocks similar to Alteryx, Inc. (NYSE:AYX). These stocks are Melco Resorts & Entertainment Limited (NASDAQ:MLCO), Herbalife Nutrition Ltd. (NYSE:HLF), National Beverage Corp. (NASDAQ:FIZZ), Pan American Silver Corp. (NASDAQ:PAAS), PowerSchool Holdings Inc. (NYSE:PWSC), Victorias Secret & Co. (NYSE:VSCO), and Wingstop Inc (NASDAQ:WING). All of these stocks’ market caps are closest to AYX’s market cap.

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As you can see these stocks had an average of 25 hedge funds with bullish positions and the average amount invested in these stocks was $1038 million. That figure was $857 million in AYX’s case. Herbalife Nutrition Ltd. (NYSE:HLF) is the most popular stock in this table. On the other hand PowerSchool Holdings Inc. (NYSE:PWSC) is the least popular one with only 11 bullish hedge fund positions. Alteryx, Inc. (NYSE:AYX) is not the most popular stock in this group but hedge fund interest is still above average. Our overall hedge fund sentiment score for AYX is 80.3. 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 AYX wasn’t nearly as popular as these 5 stocks and hedge funds that were betting on AYX were disappointed as the stock returned -9.1% 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.

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Disclosure: None. This article was originally published at Insider Monkey.