At Insider Monkey, we pore over the filings of nearly 873 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 June 30th. In this article, we will use that wealth of knowledge to determine whether or not TTM Technologies, Inc. (NASDAQ:TTMI) makes for a good investment right now.
TTM Technologies, Inc. (NASDAQ:TTMI) was in 19 hedge funds’ portfolios at the end of the second quarter of 2021. The all time high for this statistic is 22. TTMI has experienced a decrease in hedge fund interest lately. There were 21 hedge funds in our database with TTMI holdings at the end of March. Our calculations also showed that TTMI isn’t among the 30 most popular stocks among hedge funds (click for Q2 rankings).
Why do we pay any attention at all to hedge fund sentiment? Our research has shown that a select group of hedge fund holdings outperformed the S&P 500 ETFs by 79 percentage points since March 2017 (see the details here). That’s why we believe hedge fund sentiment is an extremely useful indicator that investors should pay attention to.
John Overdeck of Two Sigma Advisors
Keeping this in mind we’re going to review the key hedge fund action regarding TTM Technologies, Inc. (NASDAQ:TTMI).
Do Hedge Funds Think TTMI Is A Good Stock To Buy Now?
At Q2’s end, a total of 19 of the hedge funds tracked by Insider Monkey were bullish on this stock, a change of -10% from the previous quarter. Below, you can check out the change in hedge fund sentiment towards TTMI over the last 24 quarters. So, let’s review which hedge funds were among the top holders of the stock and which hedge funds were making big moves.
Among these funds, Rubric Capital Management held the most valuable stake in TTM Technologies, Inc. (NASDAQ:TTMI), which was worth $31.4 million at the end of the second quarter. On the second spot was Select Equity Group which amassed $25.4 million worth of shares. D E Shaw, Two Sigma Advisors, and Divisar Capital 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 Divisar Capital allocated the biggest weight to TTM Technologies, Inc. (NASDAQ:TTMI), around 2.91% of its 13F portfolio. Rubric Capital Management is also relatively very bullish on the stock, earmarking 1.97 percent of its 13F equity portfolio to TTMI.
Seeing as TTM Technologies, Inc. (NASDAQ:TTMI) has experienced a decline in interest from the smart money, we can see that there is a sect of hedgies that decided to sell off their full holdings heading into Q3. At the top of the heap, Peter Rathjens, Bruce Clarke and John Campbell’s Arrowstreet Capital cut the biggest position of the “upper crust” of funds tracked by Insider Monkey, totaling close to $9.6 million in stock, and Paul Tudor Jones’s Tudor Investment Corp was right behind this move, as the fund dropped about $3.4 million worth. These moves are important to note, as aggregate hedge fund interest dropped by 2 funds heading into Q3.
Let’s now take a look at hedge fund activity in other stocks – not necessarily in the same industry as TTM Technologies, Inc. (NASDAQ:TTMI) but similarly valued. We will take a look at Dine Brands Global, Inc. (NYSE:DIN), MYR Group Inc (NASDAQ:MYRG), Malibu Boats Inc (NASDAQ:MBUU), eHealth, Inc. (NASDAQ:EHTH), NANO-X IMAGING LTD (NASDAQ:NNOX), Generation Bio Co. (NASDAQ:GBIO), and Stewart Information Services Corp (NYSE:STC). This group of stocks’ market values are similar to TTMI’s market value.
| Ticker | No of HFs with positions | Total Value of HF Positions (x1000) | Change in HF Position |
|---|---|---|---|
| DIN | 28 | 218107 | 0 |
| MYRG | 13 | 90524 | -1 |
| MBUU | 15 | 120958 | -1 |
| EHTH | 24 | 378801 | 1 |
| NNOX | 11 | 28721 | 8 |
| GBIO | 13 | 201751 | 4 |
| STC | 17 | 112471 | -2 |
| Average | 17.3 | 164476 | 1.3 |
View table here if you experience formatting issues.
As you can see these stocks had an average of 17.3 hedge funds with bullish positions and the average amount invested in these stocks was $164 million. That figure was $135 million in TTMI’s case. Dine Brands Global, Inc. (NYSE:DIN) is the most popular stock in this table. On the other hand NANO-X IMAGING LTD (NASDAQ:NNOX) is the least popular one with only 11 bullish hedge fund positions. TTM Technologies, Inc. (NASDAQ:TTMI) is not the most popular stock in this group but hedge fund interest is still above average. Our overall hedge fund sentiment score for TTMI is 52.4. 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 24% in 2021 through October 22nd and beat the market again by 1.6 percentage points. Unfortunately TTMI wasn’t nearly as popular as these 5 stocks and hedge funds that were betting on TTMI were disappointed as the stock returned -6% since the end of June (through 10/22) 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.
