At Insider Monkey, we pore over the filings of nearly 867 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 September 30th. In this article, we will use that wealth of knowledge to determine whether or not Jackson Financial Inc. (NYSE:JXN) makes for a good investment right now.
Is JXN a good stock to buy now? Money managers were taking an optimistic view. The number of long hedge fund positions advanced by 22 lately. Jackson Financial Inc. (NYSE:JXN) was in 22 hedge funds’ portfolios at the end of the third quarter of 2021. Our calculations also showed that JXN isn’t among the 30 most popular stocks among hedge funds (click for Q2 rankings).
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 we’re going to take a gander at the new hedge fund action surrounding Jackson Financial Inc. (NYSE:JXN).
Dan Loeb of Third Point
Do Hedge Funds Think JXN Is A Good Stock To Buy Now?
At Q3’s end, a total of 22 of the hedge funds tracked by Insider Monkey were bullish on this stock, a change of 22 from one quarter earlier. The graph below displays the number of hedge funds with bullish position in JXN over the last 25 quarters. So, let’s find out which hedge funds were among the top holders of the stock and which hedge funds were making big moves.
The largest stake in Jackson Financial Inc. (NYSE:JXN) was held by Sessa Capital, which reported holding $117 million worth of stock at the end of September. It was followed by Third Point with a $47.1 million position. Other investors bullish on the company included Lakewood Capital Management, CaaS Capital, and Newtyn Management. In terms of the portfolio weights assigned to each position Toscafund Asset Management allocated the biggest weight to Jackson Financial Inc. (NYSE:JXN) , around 13.85% of its 13F portfolio. Newtyn Management is also relatively very bullish on the stock, dishing out 6.09 percent of its 13F equity portfolio to JXN.
With a general bullishness amongst the heavyweights, specific money managers were leading the bulls’ herd. Sessa Capital, managed by John Petry, assembled the biggest position in Jackson Financial Inc. (NYSE:JXN) . Sessa Capital had $117 million invested in the company at the end of the quarter. Dan Loeb’s Third Point also initiated a $47.1 million position during the quarter. The other funds with new positions in the stock are Anthony Bozza’s Lakewood Capital Management, Frank Fu’s CaaS Capital, and Noah Levy and Eugene Dozortsev’s Newtyn Management.
Let’s now take a look at hedge fund activity in other stocks similar to Jackson Financial Inc. (NYSE:JXN) . These stocks are Mednax Inc. (NYSE:MD), Wolverine World Wide, Inc. (NYSE:WWW), National Health Investors Inc (NYSE:NHI), FuelCell Energy, Inc. (NASDAQ:FCEL), The Cheesecake Factory Incorporated (NASDAQ:CAKE), Sterling Check Corp. (NASDAQ:STER), and WSFS Financial Corporation (NASDAQ:WSFS). All of these stocks’ market caps are closest to JXN’s market cap.
| Ticker | No of HFs with positions | Total Value of HF Positions (x1000) | Change in HF Position |
|---|---|---|---|
| MD | 23 | 254331 | 4 |
| WWW | 21 | 113931 | 0 |
| NHI | 15 | 19189 | 2 |
| FCEL | 19 | 100272 | 5 |
| CAKE | 20 | 171595 | -6 |
| STER | 22 | 83549 | 22 |
| WSFS | 10 | 79352 | -1 |
| Average | 18.6 | 117460 | 3.7 |
View table here if you experience formatting issues.
As you can see these stocks had an average of 18.6 hedge funds with bullish positions and the average amount invested in these stocks was $117 million. That figure was $346 million in JXN’s case. Mednax Inc. (NYSE:MD) is the most popular stock in this table. On the other hand WSFS Financial Corporation (NASDAQ:WSFS) is the least popular one with only 10 bullish hedge fund positions. Jackson Financial Inc. (NYSE:JXN) is not the most popular stock in this group but hedge fund interest is still above average. Our overall hedge fund sentiment score for JXN is 83.8. 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 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 29.6% in 2021 and still beat the market by 3.6 percentage points. Hedge funds were also right about betting on JXN as the stock returned 63.1% since the end of Q3 (through 12/31) and outperformed the market. Hedge funds were rewarded for their relative bullishness.
Follow Jackson Financial Inc.
Follow Jackson Financial Inc.
Suggested Articles:
- 20 Most Profitable Fast Food Chains
- 25 Countries That Have The Most Debt Per Capita
- 15 Most Valuable African Companies
Disclosure: None. This article was originally published at Insider Monkey.
