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 NCR Corporation (NYSE:NCR) makes for a good investment right now.
Is NCR stock a buy? Hedge fund interest in NCR Corporation (NYSE:NCR) shares was flat at the end of last quarter. This is usually a negative indicator. Our calculations also showed that NCR isn’t among the 30 most popular stocks among hedge funds (click for Q4 rankings). At the end of this article we will also compare NCR to other stocks including SailPoint Technologies Holdings, Inc. (NYSE:SAIL), Curtiss-Wright Corp. (NYSE:CW), and TFI International Inc. (NYSE:TFII) to get a better sense of its popularity.
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Do Hedge Funds Think NCR Is A Good Stock To Buy Now?
Heading into the first quarter of 2021, a total of 32 of the hedge funds tracked by Insider Monkey were bullish on this stock, a change of 0% from the previous quarter. Below, you can check out the change in hedge fund sentiment towards NCR over the last 22 quarters. So, let’s examine which hedge funds were among the top holders of the stock and which hedge funds were making big moves.
The largest stake in NCR Corporation (NYSE:NCR) was held by Light Street Capital, which reported holding $85.8 million worth of stock at the end of December. It was followed by Engaged Capital with a $80.2 million position. Other investors bullish on the company included Nitorum Capital, Point72 Asset Management, and Greenlight Capital. In terms of the portfolio weights assigned to each position Cowbird Capital allocated the biggest weight to NCR Corporation (NYSE:NCR), around 9.39% of its 13F portfolio. Beach Point Capital Management is also relatively very bullish on the stock, designating 7.69 percent of its 13F equity portfolio to NCR.
Because NCR Corporation (NYSE:NCR) has witnessed bearish sentiment from the entirety of the hedge funds we track, it’s easy to see that there were a few hedgies who were dropping their full holdings last quarter. It’s worth mentioning that James Dinan’s York Capital Management cut the biggest investment of the 750 funds followed by Insider Monkey, valued at an estimated $15.1 million in stock, and Robert Rodriguez and Steven Romick’s First Pacific Advisors LLC was right behind this move, as the fund said goodbye to about $5.5 million worth. These moves are interesting, as aggregate hedge fund interest stayed the same (this is a bearish signal in our experience).
Let’s go over hedge fund activity in other stocks – not necessarily in the same industry as NCR Corporation (NYSE:NCR) but similarly valued. We will take a look at SailPoint Technologies Holdings, Inc. (NYSE:SAIL), Curtiss-Wright Corp. (NYSE:CW), TFI International Inc. (NYSE:TFII), BOK Financial Corporation (NASDAQ:BOKF), Nexstar Media Group, Inc. (NASDAQ:NXST), Ashland Global Holdings Inc.. (NYSE:ASH), and Flowserve Corporation (NYSE:FLS). This group of stocks’ market valuations are closest to NCR’s market valuation.
| Ticker | No of HFs with positions | Total Value of HF Positions (x1000) | Change in HF Position |
|---|---|---|---|
| SAIL | 32 | 1002995 | 3 |
| CW | 23 | 245187 | -3 |
| TFII | 10 | 78114 | -3 |
| BOKF | 26 | 361027 | 5 |
| NXST | 44 | 891159 | 3 |
| ASH | 38 | 1114289 | -8 |
| FLS | 21 | 148236 | 2 |
| Average | 27.7 | 548715 | -0.1 |
View table here if you experience formatting issues.
As you can see these stocks had an average of 27.7 hedge funds with bullish positions and the average amount invested in these stocks was $549 million. That figure was $483 million in NCR’s case. Nexstar Media Group, Inc. (NASDAQ:NXST) is the most popular stock in this table. On the other hand TFI International Inc. (NYSE:TFII) is the least popular one with only 10 bullish hedge fund positions. NCR Corporation (NYSE:NCR) is not the most popular stock in this group but hedge fund interest is still above average. Our overall hedge fund sentiment score for NCR 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 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 NCR, though not to the same extent, as the stock returned 7.9% since Q4 (through April 12th) and outperformed the market as well.
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Disclosure: None. This article was originally published at Insider Monkey.
