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 873 world-class investment firms that we track and now have access to the collective wisdom contained in these filings, which are based on their June 30th holdings, data that is available nowhere else. Should you consider Civeo Corporation (NYSE:CVEO) for your portfolio? We’ll look to this invaluable collective wisdom for the answer.
Is CVEO a good stock to buy? Civeo Corporation (NYSE:CVEO) shareholders have witnessed an increase in support from the world’s most elite money managers lately. Civeo Corporation (NYSE:CVEO) was in 10 hedge funds’ portfolios at the end of the second quarter of 2021. The all time high for this statistic is 18. Our calculations also showed that CVEO isn’t among the 30 most popular stocks among hedge funds (click for Q2 rankings).
In the financial world there are a large number of tools investors have at their disposal to grade stocks. A pair of the most under-the-radar tools are hedge fund and insider trading indicators. We have shown that, historically, those who follow the top picks of the best fund managers can outperform the broader indices by a solid amount. Insider Monkey’s monthly stock picks returned 185.4% since March 2017 and outperformed the S&P 500 ETFs by more than 79 percentage points (see the details here). That’s why we believe hedge fund sentiment is a useful indicator that investors should pay attention to.
Gavin Saitowitz of Prelude Capital
At Insider Monkey, we scour multiple sources to uncover the next great investment idea. 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. We read hedge fund investor letters and listen to stock pitches at hedge fund conferences. You can subscribe to our free daily newsletter on our homepage. Now let’s check out the recent hedge fund action surrounding Civeo Corporation (NYSE:CVEO).
Do Hedge Funds Think CVEO Is A Good Stock To Buy Now?
At the end of June, a total of 10 of the hedge funds tracked by Insider Monkey were bullish on this stock, a change of 11% from one quarter earlier. By comparison, 14 hedge funds held shares or bullish call options in CVEO a year ago. So, let’s review which hedge funds were among the top holders of the stock and which hedge funds were making big moves.
More specifically, Horizon Asset Management was the largest shareholder of Civeo Corporation (NYSE:CVEO), with a stake worth $61.6 million reported as of the end of June. Trailing Horizon Asset Management was Prescott Group Capital Management, which amassed a stake valued at $15 million. Renaissance Technologies, Invenomic Capital Management, and Balyasny Asset 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 Prescott Group Capital Management allocated the biggest weight to Civeo Corporation (NYSE:CVEO), around 4.25% of its 13F portfolio. Horizon Asset Management is also relatively very bullish on the stock, earmarking 1.25 percent of its 13F equity portfolio to CVEO.
As aggregate interest increased, key hedge funds have jumped into Civeo Corporation (NYSE:CVEO) headfirst. Diametric Capital, managed by Nick Thakore, initiated the largest position in Civeo Corporation (NYSE:CVEO). Diametric Capital had $0.6 million invested in the company at the end of the quarter. Gavin Saitowitz and Cisco J. del Valle’s Prelude Capital (previously Springbok Capital) also made a $0.4 million investment in the stock during the quarter.
Let’s also examine hedge fund activity in other stocks similar to Civeo Corporation (NYSE:CVEO). These stocks are Community Bankers Trust Corp. (NASDAQ:ESXB), VIA optronics AG (NYSE:VIAO), Exagen Inc. (NASDAQ:XGN), Bank of Commerce Holdings (NASDAQ:BOCH), Oil-Dri Corporation of America (NYSE:ODC), Central Valley Community Bancorp (NASDAQ:CVCY), and Northern Dynasty Minerals Ltd. (NYSE:NAK). This group of stocks’ market caps resemble CVEO’s market cap.
| Ticker | No of HFs with positions | Total Value of HF Positions (x1000) | Change in HF Position |
|---|---|---|---|
| ESXB | 12 | 39044 | 6 |
| VIAO | 6 | 25022 | -2 |
| XGN | 6 | 19037 | -4 |
| BOCH | 6 | 19269 | 3 |
| ODC | 4 | 28962 | 0 |
| CVCY | 10 | 12604 | 7 |
| NAK | 6 | 14337 | -1 |
| Average | 7.1 | 22611 | 1.3 |
View table here if you experience formatting issues.
As you can see these stocks had an average of 7.1 hedge funds with bullish positions and the average amount invested in these stocks was $23 million. That figure was $99 million in CVEO’s case. Community Bankers Trust Corp. (NASDAQ:ESXB) is the most popular stock in this table. On the other hand Oil-Dri Corporation of America (NYSE:ODC) is the least popular one with only 4 bullish hedge fund positions. Civeo Corporation (NYSE:CVEO) is not the most popular stock in this group but hedge fund interest is still above average. Our overall hedge fund sentiment score for CVEO is 60.2. 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 25.7% in 2021 through September 27th and still beat the market by 6.2 percentage points. Hedge funds were also right about betting on CVEO as the stock returned 31.9% since the end of Q2 (through 9/27) and outperformed the market. Hedge funds were rewarded for their relative bullishness.
Follow Civeo Corp (NYSE:CVEO)
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Disclosure: None. This article was originally published at Insider Monkey.
