The latest 13F reporting period has come and gone, and Insider Monkey is again at the forefront when it comes to making use of this gold mine of data. Insider Monkey finished processing 867 13F filings submitted by hedge funds and prominent investors. These filings show these funds’ portfolio positions as of September 30th, 2021. In this article we are going to take a look at smart money sentiment towards Winnebago Industries, Inc. (NYSE:WGO).
Hedge fund interest in Winnebago Industries, Inc. (NYSE:WGO) shares was flat at the end of last quarter. This is usually a negative indicator. Our calculations also showed that WGO isn’t among the 30 most popular stocks among hedge funds (click for Q3 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 Corsair Gaming, Inc. (NASDAQ:CRSR), Arcosa, Inc. (NYSE:ACA), and SPX Corporation (NYSE:SPXC) to gather more data points.
Matthew Hulsizer of PEAK6 Capital
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. With all of this in mind we’re going to take a look at the key hedge fund action regarding Winnebago Industries, Inc. (NYSE:WGO).
Do Hedge Funds Think WGO Is A Good Stock To Buy Now?
At third quarter’s end, a total of 24 of the hedge funds tracked by Insider Monkey held long positions in this stock, a change of 0% from the second quarter of 2021. Below, you can check out the change in hedge fund sentiment towards WGO over the last 25 quarters. So, let’s check out which hedge funds were among the top holders of the stock and which hedge funds were making big moves.
More specifically, Fisher Asset Management was the largest shareholder of Winnebago Industries, Inc. (NYSE:WGO), with a stake worth $123.7 million reported as of the end of September. Trailing Fisher Asset Management was Punch Card Capital, which amassed a stake valued at $74.1 million. Citadel Investment Group, Royce & Associates, and Shellback Capital were 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 Punch Card Capital allocated the biggest weight to Winnebago Industries, Inc. (NYSE:WGO), around 19.22% of its 13F portfolio. Shellback Capital is also relatively very bullish on the stock, dishing out 1.38 percent of its 13F equity portfolio to WGO.
Judging by the fact that Winnebago Industries, Inc. (NYSE:WGO) has witnessed falling interest from the entirety of the hedge funds we track, logic holds that there is a sect of hedgies that decided to sell off their entire stakes heading into Q4. It’s worth mentioning that Ken Griffin’s Citadel Investment Group sold off the biggest investment of the “upper crust” of funds followed by Insider Monkey, valued at about $14.1 million in stock. David Costen Haley’s fund, HBK Investments, also dropped its stock, about $12.8 million worth. These bearish behaviors are important to note, as total hedge fund interest stayed the same (this is a bearish signal in our experience).
Let’s check out hedge fund activity in other stocks similar to Winnebago Industries, Inc. (NYSE:WGO). These stocks are Corsair Gaming, Inc. (NASDAQ:CRSR), Arcosa, Inc. (NYSE:ACA), SPX Corporation (NYSE:SPXC), Rambus Inc. (NASDAQ:RMBS), Taro Pharmaceutical Industries Ltd. (NYSE:TARO), Mueller Water Products, Inc. (NYSE:MWA), and Comstock Resources Inc (NYSE:CRK). This group of stocks’ market values resemble WGO’s market value.
| Ticker | No of HFs with positions | Total Value of HF Positions (x1000) | Change in HF Position |
|---|---|---|---|
| CRSR | 13 | 42781 | -1 |
| ACA | 15 | 154626 | 3 |
| SPXC | 13 | 38841 | 2 |
| RMBS | 21 | 322009 | 1 |
| TARO | 5 | 64663 | -2 |
| MWA | 23 | 321773 | 1 |
| CRK | 24 | 153302 | 4 |
| Average | 16.3 | 156856 | 1.1 |
View table here if you experience formatting issues.
As you can see these stocks had an average of 16.3 hedge funds with bullish positions and the average amount invested in these stocks was $157 million. That figure was $358 million in WGO’s case. Comstock Resources Inc (NYSE:CRK) is the most popular stock in this table. On the other hand Taro Pharmaceutical Industries Ltd. (NYSE:TARO) is the least popular one with only 5 bullish hedge fund positions. Winnebago Industries, Inc. (NYSE:WGO) is not the most popular stock in this group but hedge fund interest is still above average. Our overall hedge fund sentiment score for WGO is 76.8. 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. 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 31.1% in 2021 through December 9th and beat the market again by 5.1 percentage points. Unfortunately WGO wasn’t nearly as popular as these 5 stocks and hedge funds that were betting on WGO were disappointed as the stock returned -4.3% since the end of September (through 12/9) 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 Winnebago Industries Inc (NYSE:WGO)
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Disclosure: None. This article was originally published at Insider Monkey.
