Is SIBN Stock A Buy or Sell?

In this article we will check out the progression of hedge fund sentiment towards SI-BONE, Inc. (NASDAQ:SIBN) and determine whether it is a good investment right now. We at Insider Monkey like to examine what billionaires and hedge funds think of a company before spending days of research on it. Given their 2 and 20 payment structure, hedge funds have more incentives and resources than the average investor. The funds have access to expert networks and get tips from industry insiders. They also employ numerous Ivy League graduates and MBAs. Like everyone else, hedge funds perform miserably at times, but their consensus picks have historically outperformed the market after risk adjustments.

Is SIBN stock a buy? SI-BONE, Inc. (NASDAQ:SIBN) was in 30 hedge funds’ portfolios at the end of the fourth quarter of 2020. The all time high for this statistic is 19. This means the bullish number of hedge fund positions in this stock currently sits at its all time high. SIBN investors should pay attention to an increase in activity from the world’s largest hedge funds of late. There were 19 hedge funds in our database with SIBN holdings at the end of September. Our calculations also showed that SIBN isn’t among the 30 most popular stocks among hedge funds (click for Q4 rankings).

Richard Driehaus of Driehaus Capital

At Insider Monkey we leave no stone unturned when looking for the next great investment idea. For example, we heard that billionaire Peter Thiel is backing this psychedelic-drug startup. So, we are taking a closer look at this space. We go through lists like the 10 best biotech stocks under $10 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. With all of this in mind we’re going to take a glance at the key hedge fund action surrounding SI-BONE, Inc. (NASDAQ:SIBN).

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

At fourth quarter’s end, a total of 30 of the hedge funds tracked by Insider Monkey were bullish on this stock, a change of 58% from one quarter earlier. On the other hand, there were a total of 7 hedge funds with a bullish position in SIBN a year ago. So, let’s check out which hedge funds were among the top holders of the stock and which hedge funds were making big moves.

According to publicly available hedge fund and institutional investor holdings data compiled by Insider Monkey, OrbiMed Advisors has the most valuable position in SI-BONE, Inc. (NASDAQ:SIBN), worth close to $40.9 million, accounting for 0.4% of its total 13F portfolio. Coming in second is Driehaus Capital, led by Richard Driehaus, holding a $26.1 million position; 0.4% of its 13F portfolio is allocated to the company. Remaining peers with similar optimism include Israel Englander’s Millennium Management, Chuck Royce’s Royce & Associates and Efrem Kamen’s Pura Vida Investments. In terms of the portfolio weights assigned to each position Endurant Capital Management allocated the biggest weight to SI-BONE, Inc. (NASDAQ:SIBN), around 2.75% of its 13F portfolio. Tamarack Capital Management is also relatively very bullish on the stock, setting aside 2.34 percent of its 13F equity portfolio to SIBN.

As industrywide interest jumped, some big names were leading the bulls’ herd. Holocene Advisors, managed by Brandon Haley, initiated the largest position in SI-BONE, Inc. (NASDAQ:SIBN). Holocene Advisors had $15.2 million invested in the company at the end of the quarter. Mark Coe’s Intrinsic Edge Capital also made a $4.4 million investment in the stock during the quarter. The following funds were also among the new SIBN investors: D. E. Shaw’s D E Shaw, Peter Rathjens, Bruce Clarke and John Campbell’s Arrowstreet Capital, and Paul Marshall and Ian Wace’s Marshall Wace LLP.

Let’s now review hedge fund activity in other stocks similar to SI-BONE, Inc. (NASDAQ:SIBN). We will take a look at Impinj, Inc. (NASDAQ:PI), Colony Credit Real Estate, Inc. (NYSE:CLNC), Organogenesis Holdings Inc. (NASDAQ:ORGO), Standex International Corp. (NYSE:SXI), ProAssurance Corporation (NYSE:PRA), BellRing Brands, Inc. (NYSE:BRBR), and Avidity Biosciences, Inc. (NASDAQ:RNA). This group of stocks’ market values are similar to SIBN’s market value.

View table here if you experience formatting issues.

As you can see these stocks had an average of 13.3 hedge funds with bullish positions and the average amount invested in these stocks was $144 million. That figure was $235 million in SIBN’s case. Impinj, Inc. (NASDAQ:PI) is the most popular stock in this table. On the other hand Colony Credit Real Estate, Inc. (NYSE:CLNC) is the least popular one with only 10 bullish hedge fund positions. Compared to these stocks SI-BONE, Inc. (NASDAQ:SIBN) is more popular among hedge funds. Our overall hedge fund sentiment score for SIBN is 90. 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 returned 12.2% in 2021 through April 12th but still managed to beat the market by 1.5 percentage points. Hedge funds were also right about betting on SIBN as the stock returned 12.6% since the end of December (through 4/12) and outperformed the market by an even larger margin. Hedge funds were clearly right about piling into this stock relative to other stocks with similar market capitalizations.

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