Is ANGI Inc (ANGI) A Good Stock To Buy?

As we already know from media reports and hedge fund investor letters, hedge funds delivered their best returns in a decade. Most investors who decided to stick with hedge funds after a rough 2018 recouped their losses by the end of the fourth quarter of 2019. A significant number of hedge funds continued their strong performance in 2020 and 2021 as well. We get to see hedge funds’ thoughts towards the market and individual stocks by aggregating their quarterly portfolio movements and reading their investor letters. In this article, we will particularly take a look at what hedge funds think about ANGI Inc (NASDAQ:ANGI).

Is ANGI a good stock to buy now? ANGI Inc (NASDAQ:ANGI) shares haven’t seen a lot of action during the third quarter. Overall, hedge fund sentiment was unchanged. The stock was in 26 hedge funds’ portfolios at the end of the third quarter of 2021. Our calculations also showed that ANGI isn’t among the 30 most popular stocks among hedge funds (click for Q3 rankings). At the end of this article we will also compare ANGI to other stocks including Emcor Group Inc (NYSE:EME), Acuity Brands, Inc. (NYSE:AYI), and Freshpet Inc (NASDAQ:FRPT) to get a better sense of its popularity.

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 take a peek at the new hedge fund action surrounding ANGI Inc (NASDAQ:ANGI).

Sander Gerber of Hudson Bay Capital Management

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

At Q3’s end, a total of 26 of the hedge funds tracked by Insider Monkey were long this stock, a change of 0% from the second quarter of 2021. On the other hand, there were a total of 42 hedge funds with a bullish position in ANGI a year ago. With the smart money’s capital changing hands, there exists a select group of noteworthy hedge fund managers who were adding to their holdings substantially (or already accumulated large positions).

According to Insider Monkey’s hedge fund database, Dennis Hong’s ShawSpring Partners has the largest position in ANGI Inc (NASDAQ:ANGI), worth close to $51 million, corresponding to 5.3% of its total 13F portfolio. Coming in second is Point72 Asset Management, led by Steve Cohen, holding a $34.7 million position; the fund has 0.2% of its 13F portfolio invested in the stock. Some other peers that are bullish consist of Joshua Nash’s Ulysses Management, Robert M. P. Luciano’s VGI Partners and Ari Zweiman’s 683 Capital Partners. In terms of the portfolio weights assigned to each position ShawSpring Partners allocated the biggest weight to ANGI Inc (NASDAQ:ANGI), around 5.32% of its 13F portfolio. Ulysses Management is also relatively very bullish on the stock, designating 3.52 percent of its 13F equity portfolio to ANGI.

Because ANGI Inc (NASDAQ:ANGI) has witnessed declining sentiment from the smart money, we can see that there lies a certain “tier” of money managers that slashed their full holdings in the third quarter. It’s worth mentioning that Ed Bosek’s BeaconLight Capital said goodbye to the biggest position of all the hedgies tracked by Insider Monkey, totaling an estimated $7.8 million in stock, and Peter S. Park’s Park West Asset Management was right behind this move, as the fund sold off about $5.4 million worth. These bearish behaviors are intriguing to say the least, as total hedge fund interest stayed the same (this is a bearish signal in our experience).

Let’s go over hedge fund activity in other stocks – not necessarily in the same industry as ANGI Inc (NASDAQ:ANGI) but similarly valued. We will take a look at Emcor Group Inc (NYSE:EME), Acuity Brands, Inc. (NYSE:AYI), Freshpet Inc (NASDAQ:FRPT), BOK Financial Corporation (NASDAQ:BOKF), CACI International Inc (NYSE:CACI), InVitae Corporation (NYSE:NVTA), and Grupo Televisa SAB (NYSE:TV). This group of stocks’ market valuations match ANGI’s market valuation.

View table here if you experience formatting issues.

As you can see these stocks had an average of 20.6 hedge funds with bullish positions and the average amount invested in these stocks was $626 million. That figure was $257 million in ANGI’s case. Acuity Brands, Inc. (NYSE:AYI) is the most popular stock in this table. On the other hand BOK Financial Corporation (NASDAQ:BOKF) is the least popular one with only 15 bullish hedge fund positions. ANGI Inc (NASDAQ:ANGI) is not the most popular stock in this group but hedge fund interest is still above average. Our overall hedge fund sentiment score for ANGI is 71.3. 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 31.1% in 2021 through December 9th and beat the market again by 5.1 percentage points. Unfortunately ANGI wasn’t nearly as popular as these 5 stocks and hedge funds that were betting on ANGI were disappointed as the stock returned -18.7% since the end of September (through 12/9) 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.