We at Insider Monkey have gone over 866 13F filings that hedge funds and prominent investors are required to file by the SEC. The 13F filings show the funds’ and investors’ portfolio positions as of March 31st. In this article, we look at what those funds think of Profire Energy, Inc. (NASDAQ:PFIE) based on that data.
Is PFIE a good stock to buy? Profire Energy, Inc. (NASDAQ:PFIE) shares haven’t seen a lot of action during the second quarter. Overall, hedge fund sentiment was unchanged. The stock was in 5 hedge funds’ portfolios at the end of the first quarter of 2021. Our calculations also showed that PFIE isn’t among the 30 most popular stocks among hedge funds (click for Q1 rankings). The level and the change in hedge fund popularity aren’t the only variables you need to analyze to decipher hedge funds’ perspectives. A stock may witness a boost in popularity but it may still be less popular than similarly priced stocks. That’s why at the end of this article we will examine companies such as MIND C.T.I. Ltd. (NASDAQ:MNDO), NuZee, Inc. (NASDAQ:NUZE), and 1847 Goedeker Inc. (NYSE:GOED) to gather more data points.
Hedge funds’ reputation as shrewd investors has been tarnished in the last decade as their hedged returns couldn’t keep up with the unhedged returns of the market indices. Hedge funds have more than $3.5 trillion in assets under management, so you can’t expect their entire portfolios to beat the market by large margins. Our research was able to identify in advance a select group of hedge fund holdings that outperformed the S&P 500 ETFs by more than 115 percentage points since March 2017 (see the details here). So you can still find a lot of gems by following hedge funds’ moves today.
Fred DiSanto of Ancora Advisors
At Insider Monkey, we scour multiple sources to uncover the next great investment idea. For example, an activist hedge fund owns nearly 40% of this $23 biotech stock and is trying to buy the rest for around $50. So, we recommended a long position to our monthly premium newsletter subscribers. We go through lists like the 10 best battery 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. Keeping this in mind let’s take a gander at the key hedge fund action regarding Profire Energy, Inc. (NASDAQ:PFIE).
Do Hedge Funds Think PFIE Is A Good Stock To Buy Now?
At the end of the first quarter, a total of 5 of the hedge funds tracked by Insider Monkey held long positions in this stock, a change of 0% from one quarter earlier. On the other hand, there were a total of 3 hedge funds with a bullish position in PFIE a year ago. With hedgies’ capital changing hands, there exists a few noteworthy hedge fund managers who were adding to their holdings substantially (or already accumulated large positions).
When looking at the institutional investors followed by Insider Monkey, Chuck Royce’s Royce & Associates has the number one position in Profire Energy, Inc. (NASDAQ:PFIE), worth close to $2.3 million, comprising less than 0.1%% of its total 13F portfolio. The second most bullish fund manager is Renaissance Technologies, which holds a $1.7 million position; less than 0.1%% of its 13F portfolio is allocated to the company. Some other members of the smart money with similar optimism include Frederick DiSanto’s Ancora Advisors, Blair Baker’s Precept Capital Management and Israel Englander’s Millennium Management. In terms of the portfolio weights assigned to each position Precept Capital Management allocated the biggest weight to Profire Energy, Inc. (NASDAQ:PFIE), around 0.24% of its 13F portfolio. Ancora Advisors is also relatively very bullish on the stock, designating 0.02 percent of its 13F equity portfolio to PFIE.
Since Profire Energy, Inc. (NASDAQ:PFIE) has experienced bearish sentiment from the entirety of the hedge funds we track, we can see that there lies a certain “tier” of hedge funds that decided to sell off their full holdings heading into Q2. At the top of the heap, Ali Motamed’s Invenomic Capital Management dumped the largest position of the 750 funds tracked by Insider Monkey, comprising close to $0.2 million in stock, and Ken Griffin’s Citadel Investment Group was right behind this move, as the fund dropped about $0 million worth. These moves are important to note, as total 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 Profire Energy, Inc. (NASDAQ:PFIE) but similarly valued. We will take a look at MIND C.T.I. Ltd. (NASDAQ:MNDO), NuZee, Inc. (NASDAQ:NUZE), 1847 Goedeker Inc. (NYSE:GOED), Reviva Pharmaceuticals Holdings, Inc. (NASDAQ:RVPH), Net Element Inc (PINK:NETE), Cyclo Therapeutics, Inc. (NASDAQ:CYTH), and BK Technologies Corp. (NYSE:BKTI). This group of stocks’ market valuations resemble PFIE’s market valuation.
| Ticker | No of HFs with positions | Total Value of HF Positions (x1000) | Change in HF Position |
|---|---|---|---|
| MNDO | 3 | 547 | 1 |
| NUZE | 3 | 3560 | 3 |
| GOED | 1 | 127 | 1 |
| RVPH | 5 | 3854 | 2 |
| NETE | 2 | 324 | -2 |
| CYTH | 1 | 141 | -2 |
| BKTI | 1 | 2958 | 0 |
| Average | 2.3 | 1644 | 0.4 |
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 $5 million in PFIE’s case. Reviva Pharmaceuticals Holdings, Inc. (NASDAQ:RVPH) is the most popular stock in this table. On the other hand 1847 Goedeker Inc. (NYSE:GOED) is the least popular one with only 1 bullish hedge fund positions. Profire Energy, Inc. (NASDAQ:PFIE) is not the most popular stock in this group but hedge fund interest is still above average. Our overall hedge fund sentiment score for PFIE is 70. 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 17.4% in 2021 through June 18th and beat the market again by 6.1 percentage points. Unfortunately PFIE wasn’t nearly as popular as these 5 stocks and hedge funds that were betting on PFIE were disappointed as the stock returned -1.8% since the end of March (through 6/18) 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.
Follow Profire Energy Inc (NASDAQ:PFIE)
Follow Profire Energy Inc (NASDAQ:PFIE)
Suggested Articles:
- How to Best Use Insider Monkey To Increase Your Returns
- Top 10 Cloud Computing Stocks To Buy
- 15 Largest Health Systems in the US
Disclosure: None. This article was originally published at Insider Monkey.
