Is Mind Technology, Inc. (MIND) A Good Stock To Buy?

The Insider Monkey team has completed processing the quarterly 13F filings for the March quarter submitted by the hedge funds and other money managers included in our extensive database. Most hedge fund investors experienced strong gains on the back of a strong market performance, which certainly propelled them to adjust their equity holdings so as to maintain the desired risk profile. As a result, the relevancy of these public filings and their content is indisputable, as they may reveal numerous high-potential stocks. The following article will discuss the smart money sentiment towards Mind Technology, Inc. (NASDAQ:MIND).

Is MIND a good stock to buy? Mind Technology, Inc. (NASDAQ:MIND) was in 3 hedge funds’ portfolios at the end of the first quarter of 2021. The all time high for this statistic is 5. MIND shareholders have witnessed an increase in hedge fund interest of late. There were 2 hedge funds in our database with MIND holdings at the end of December. Our calculations also showed that MIND isn’t among the 30 most popular stocks among hedge funds (click for Q1 rankings).

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John Rogers of Ariel Investments

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

At first quarter’s end, a total of 3 of the hedge funds tracked by Insider Monkey were long this stock, a change of 50% from one quarter earlier. By comparison, 3 hedge funds held shares or bullish call options in MIND 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.

Among these funds, Ariel Investments held the most valuable stake in Mind Technology, Inc. (NASDAQ:MIND), which was worth $3.6 million at the end of the fourth quarter. On the second spot was Renaissance Technologies which amassed $1.9 million worth of shares. Millennium Management was 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 Ariel Investments allocated the biggest weight to Mind Technology, Inc. (NASDAQ:MIND), around 0.04% of its 13F portfolio. Renaissance Technologies is also relatively very bullish on the stock, dishing out 0.0024 percent of its 13F equity portfolio to MIND.

With a general bullishness amongst the heavyweights, key money managers were breaking ground themselves. Millennium Management, managed by Israel Englander, initiated the most outsized position in Mind Technology, Inc. (NASDAQ:MIND). Millennium Management had $0 million invested in the company at the end of the quarter. Ken Griffin’s Citadel Investment Group also made a $0 million investment in the stock during the quarter.

Let’s now take a look at hedge fund activity in other stocks similar to Mind Technology, Inc. (NASDAQ:MIND). We will take a look at Hexindai Inc. (NASDAQ:HX), Lexaria Bioscience Corp. (NASDAQ:LEXX), Planet Green Holdings Corp. (NYSE:PLAG), Cypress Energy Partners, L.P. (NYSE:CELP), Obalon Therapeutics, Inc. (NASDAQ:OBLN), Forward Industries, Inc. (NASDAQ:FORD), and Coffee Holding Co., Inc. (NASDAQ:JVA). All of these stocks’ market caps are closest to MIND’s market cap.

View table here if you experience formatting issues.

As you can see these stocks had an average of 2.3 hedge funds with bullish positions and the average amount invested in these stocks was $2 million. That figure was $6 million in MIND’s case. Lexaria Bioscience Corp. (NASDAQ:LEXX) is the most popular stock in this table. On the other hand Cypress Energy Partners, L.P. (NYSE:CELP) is the least popular one with only 1 bullish hedge fund positions. Mind Technology, Inc. (NASDAQ:MIND) is not the most popular stock in this group but hedge fund interest is still above average. Our overall hedge fund sentiment score for MIND is 57.3. 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 17.2% in 2021 through June 11th and beat the market again by 3.3 percentage points. Unfortunately MIND wasn’t nearly as popular as these 5 stocks and hedge funds that were betting on MIND were disappointed as the stock returned -5.8% since the end of March (through 6/11) 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.

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

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