Is ANGI Stock A Buy or Sell?

In this article we are going to use hedge fund sentiment as a tool and determine whether ANGI Inc (NASDAQ:ANGI) is a good investment right now. We like to analyze hedge fund sentiment before conducting days of in-depth research. We do so because hedge funds and other elite investors have numerous Ivy League graduates, expert network advisers, and supply chain tipsters working or consulting for them. There is not a shortage of news stories covering failed hedge fund investments and it is a fact that hedge funds’ picks don’t beat the market 100% of the time, but their consensus picks have historically done very well and have outperformed the market after adjusting for risk.

Is ANGI stock a buy? Investors who are in the know were cutting their exposure. The number of bullish hedge fund bets were trimmed by 11 lately. ANGI Inc (NASDAQ:ANGI) was in 31 hedge funds’ portfolios at the end of the fourth quarter of 2020. The all time high for this statistic is 48. Our calculations also showed that ANGI isn’t among the 30 most popular stocks among hedge funds (click for Q4 rankings). There were 42 hedge funds in our database with ANGI positions at the end of the third quarter.

In the financial world there are numerous formulas stock traders use to size up their stock investments. Some of the less known formulas are hedge fund and insider trading signals. Our researchers have shown that, historically, those who follow the top picks of the elite fund managers can trounce the broader indices by a healthy margin (see the details here).

Steven Cohen of Point72 Asset Management

With all of this in mind we’re going to take a peek at the new hedge fund action encompassing ANGI Inc (NASDAQ:ANGI).

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

At Q4’s end, a total of 31 of the hedge funds tracked by Insider Monkey were long this stock, a change of -26% from the third quarter of 2020. By comparison, 23 hedge funds held shares or bullish call options in ANGI a year ago. So, let’s see which hedge funds were among the top holders of the stock and which hedge funds were making big moves.

More specifically, Renaissance Technologies was the largest shareholder of ANGI Inc (NASDAQ:ANGI), with a stake worth $45 million reported as of the end of December. Trailing Renaissance Technologies was ShawSpring Partners, which amassed a stake valued at $38.7 million. Ulysses Management, Point72 Asset Management, and 683 Capital 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 Ulysses Management allocated the biggest weight to ANGI Inc (NASDAQ:ANGI), around 6.09% of its 13F portfolio. ShawSpring Partners is also relatively very bullish on the stock, dishing out 5.47 percent of its 13F equity portfolio to ANGI.

Seeing as ANGI Inc (NASDAQ:ANGI) has witnessed bearish sentiment from the entirety of the hedge funds we track, logic holds that there was a specific group of funds that slashed their positions entirely heading into Q1. Intriguingly, Josh Resnick’s Jericho Capital Asset Management dropped the biggest investment of the 750 funds followed by Insider Monkey, totaling close to $19.3 million in stock. Dmitry Balyasny’s fund, Balyasny Asset Management, also dumped its stock, about $16.4 million worth. These moves are important to note, as total hedge fund interest was cut by 11 funds heading into Q1.

Let’s now take a look at hedge fund activity in other stocks similar to ANGI Inc (NASDAQ:ANGI). We will take a look at Woori Financial Group Inc. (NYSE:WF), CubeSmart (NYSE:CUBE), DXC Technology Company (NYSE:DXC), Hill-Rom Holdings, Inc. (NYSE:HRC), Kimco Realty Corp (NYSE:KIM), Cabot Oil & Gas Corporation (NYSE:COG), and ADT Inc. (NYSE:ADT). This group of stocks’ market valuations match ANGI’s market valuation.

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As you can see these stocks had an average of 22.4 hedge funds with bullish positions and the average amount invested in these stocks was $302 million. That figure was $320 million in ANGI’s case. DXC Technology Company (NYSE:DXC) is the most popular stock in this table. On the other hand Woori Financial Group Inc. (NYSE:WF) is the least popular one with only 1 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 52.8. 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 30 most popular stocks among hedge funds returned 81.2% in 2019 and 2020, and outperformed the S&P 500 ETF (SPY) by 26 percentage points. These stocks gained 12.2% in 2021 through April 12th and still beat the market by 1.5 percentage points. Hedge funds were also right about betting on ANGI as the stock returned 15.1% since the end of Q4 (through 4/12) and outperformed the market. Hedge funds were rewarded for their relative bullishness.

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