Is CMPR Stock A Buy or Sell?

At Insider Monkey, we pore over the filings of nearly 887 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 December 31st. In this article, we will use that wealth of knowledge to determine whether or not Cimpress plc (NASDAQ:CMPR) makes for a good investment right now.

Is CMPR stock a buy? Cimpress plc (NASDAQ:CMPR) shareholders have witnessed a decrease in activity from the world’s largest hedge funds of late. Cimpress plc (NASDAQ:CMPR) was in 23 hedge funds’ portfolios at the end of December. The all time high for this statistic is 25. There were 25 hedge funds in our database with CMPR holdings at the end of September. Our calculations also showed that CMPR isn’t among the 30 most popular stocks among hedge funds (click for Q4 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 197% since March 2017 and outperformed the S&P 500 ETFs by more than 124 percentage points (see the details here). That’s why we believe hedge fund sentiment is a useful indicator that investors should pay attention to.

Michael Gelband of ExodusPoint Capital

At Insider Monkey we leave no stone unturned when looking for the next great investment idea. For example, auto parts business is a recession resistant business, so we are taking a closer look at this discount auto parts stock that is growing at a 196% annualized rate. We go through lists like the 15 best micro-cap stocks to buy now to identify the next stock with 10x upside potential. 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 website. Keeping this in mind let’s review the fresh hedge fund action regarding Cimpress plc (NASDAQ:CMPR).

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

At the end of the fourth quarter, a total of 23 of the hedge funds tracked by Insider Monkey were long this stock, a change of -8% from the previous quarter. By comparison, 18 hedge funds held shares or bullish call options in CMPR 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.

The largest stake in Cimpress plc (NASDAQ:CMPR) was held by Spruce House Investment Management, which reported holding $207 million worth of stock at the end of December. It was followed by D E Shaw with a $12.1 million position. Other investors bullish on the company included Diamond Hill Capital, Bares Capital Management, and Citadel Investment Group. In terms of the portfolio weights assigned to each position Spruce House Investment Management allocated the biggest weight to Cimpress plc (NASDAQ:CMPR), around 6.33% of its 13F portfolio. Phoenician Capital is also relatively very bullish on the stock, dishing out 3.68 percent of its 13F equity portfolio to CMPR.

Due to the fact that Cimpress plc (NASDAQ:CMPR) has witnessed a decline in interest from the smart money, it’s easy to see that there lies a certain “tier” of money managers that slashed their positions entirely by the end of the fourth quarter. At the top of the heap, Peter Rathjens, Bruce Clarke and John Campbell’s Arrowstreet Capital sold off the largest investment of all the hedgies followed by Insider Monkey, valued at an estimated $2.6 million in stock. Hal Mintz’s fund, Sabby Capital, also said goodbye to its stock, about $1.7 million worth. These transactions are interesting, as aggregate hedge fund interest fell by 2 funds by the end of the fourth quarter.

Let’s go over hedge fund activity in other stocks – not necessarily in the same industry as Cimpress plc (NASDAQ:CMPR) but similarly valued. We will take a look at Allscripts Healthcare Solutions Inc (NASDAQ:MDRX), Sleep Number Corporation (NASDAQ:SNBR), Palomar Holdings, Inc. (NASDAQ:PLMR), WSFS Financial Corporation (NASDAQ:WSFS), Callaway Golf Company (NYSE:ELY), iRobot Corporation (NASDAQ:IRBT), and Industrias Bachoco, S.A.B. de C.V. (NYSE:IBA). All of these stocks’ market caps match CMPR’s market cap.

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As you can see these stocks had an average of 17.7 hedge funds with bullish positions and the average amount invested in these stocks was $183 million. That figure was $282 million in CMPR’s case. Callaway Golf Company (NYSE:ELY) is the most popular stock in this table. On the other hand Industrias Bachoco, S.A.B. de C.V. (NYSE:IBA) is the least popular one with only 2 bullish hedge fund positions. Cimpress plc (NASDAQ:CMPR) is not the most popular stock in this group but hedge fund interest is still above average. Our overall hedge fund sentiment score for CMPR is 58.2. 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 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 12.3% in 2021 through April 19th and still beat the market by 0.9 percentage points. Hedge funds were also right about betting on CMPR as the stock returned 13.7% since the end of Q4 (through 4/19) and outperformed the market. Hedge funds were rewarded for their relative bullishness.

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