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. We have processed the filings of the more than 867 world-class investment firms that we track and now have access to the collective wisdom contained in these filings, which are based on their September 30th holdings, data that is available nowhere else. Should you consider Dun & Bradstreet Corporation (NYSE:DNB) for your portfolio? We’ll look to this invaluable collective wisdom for the answer.
Is Dun & Bradstreet Corporation (NYSE:DNB) going to take off soon? The smart money was getting less optimistic. The number of long hedge fund bets went down by 12 recently. Dun & Bradstreet Corporation (NYSE:DNB) was in 33 hedge funds’ portfolios at the end of the third quarter of 2021. The all time high for this statistic is 45. Our calculations also showed that DNB isn’t among the 30 most popular stocks among hedge funds (click for Q3 rankings). There were 45 hedge funds in our database with DNB positions at the end of the second quarter.
Ricky Sandler of Eminence 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. Now we’re going to analyze the key hedge fund action surrounding Dun & Bradstreet Corporation (NYSE:DNB).
Do Hedge Funds Think DNB Is A Good Stock To Buy Now?
At third quarter’s end, a total of 33 of the hedge funds tracked by Insider Monkey were long this stock, a change of -27% from the previous quarter. Below, you can check out the change in hedge fund sentiment towards DNB over the last 25 quarters. 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, Rivulet Capital held the most valuable stake in Dun & Bradstreet Corporation (NYSE:DNB), which was worth $142.6 million at the end of the third quarter. On the second spot was Eminence Capital which amassed $90.9 million worth of shares. Sunriver Management, Nitorum Capital, and Citadel Investment Group 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 Sunriver Management allocated the biggest weight to Dun & Bradstreet Corporation (NYSE:DNB), around 8.13% of its 13F portfolio. Rivulet Capital is also relatively very bullish on the stock, setting aside 7.44 percent of its 13F equity portfolio to DNB.
Seeing as Dun & Bradstreet Corporation (NYSE:DNB) has experienced a decline in interest from the smart money, it’s easy to see that there exists a select few hedge funds that elected to cut their full holdings last quarter. Interestingly, Doug Silverman and Alexander Klabin’s Senator Investment Group cut the biggest investment of the “upper crust” of funds monitored by Insider Monkey, comprising an estimated $53.4 million in stock. Tom Purcell and Marco Tablada’s fund, Alua Capital Management, also said goodbye to its stock, about $45.2 million worth. These transactions are intriguing to say the least, as total hedge fund interest fell by 12 funds last quarter.
Let’s check out hedge fund activity in other stocks – not necessarily in the same industry as Dun & Bradstreet Corporation (NYSE:DNB) but similarly valued. We will take a look at ShockWave Medical, Inc. (NASDAQ:SWAV), Wyndham Hotels & Resorts, Inc. (NYSE:WH), Gold Fields Limited (NYSE:GFI), Woodward Inc (NASDAQ:WWD), WillScot Mobile Mini Holdings Corp. (NASDAQ:WSC), Pure Storage, Inc. (NYSE:PSTG), and Pinnacle Financial Partners (NASDAQ:PNFP). This group of stocks’ market caps resemble DNB’s market cap.
| Ticker | No of HFs with positions | Total Value of HF Positions (x1000) | Change in HF Position |
|---|---|---|---|
| SWAV | 25 | 264209 | -2 |
| WH | 26 | 806756 | 2 |
| GFI | 15 | 144585 | -2 |
| WWD | 25 | 660155 | 3 |
| WSC | 56 | 1968445 | 4 |
| PSTG | 28 | 714127 | -3 |
| PNFP | 20 | 68981 | 7 |
| Average | 27.9 | 661037 | 1.3 |
View table here if you experience formatting issues.
As you can see these stocks had an average of 27.9 hedge funds with bullish positions and the average amount invested in these stocks was $661 million. That figure was $627 million in DNB’s case. WillScot Mobile Mini Holdings Corp. (NASDAQ:WSC) is the most popular stock in this table. On the other hand Gold Fields Limited (NYSE:GFI) is the least popular one with only 15 bullish hedge fund positions. Dun & Bradstreet Corporation (NYSE:DNB) is not the most popular stock in this group but hedge fund interest is still above average. Our overall hedge fund sentiment score for DNB is 37. 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 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 28.6% in 2021 through November 30th and still beat the market by 5.6 percentage points. Hedge funds were also right about betting on DNB as the stock returned 13% since the end of Q3 (through 11/30) and outperformed the market. Hedge funds were rewarded for their relative bullishness.
Follow Dun & Bradstreet Corp (NYSE:DNB)
Follow Dun & Bradstreet Corp (NYSE:DNB)
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Disclosure: None. This article was originally published at Insider Monkey.
