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Should I Buy Anaplan, Inc. (PLAN)?

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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 Anaplan, Inc. (NYSE:PLAN).

Is Anaplan, Inc. (NYSE:PLAN) a buy, sell, or hold? Prominent investors were getting more optimistic. The number of long hedge fund bets inched up by 9 lately. Anaplan, Inc. (NYSE:PLAN) was in 61 hedge funds' portfolios at the end of September. The all time high for this statistic is 63. Our calculations also showed that PLAN isn't among the 30 most popular stocks among hedge funds (click for Q3 rankings). There were 52 hedge funds in our database with PLAN holdings at the end of June.

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. Keeping this in mind we're going to take a glance at the fresh hedge fund action regarding Anaplan, Inc. (NYSE:PLAN).

Ryan Frick Dorsal Capital
Ryan Frick Dorsal Capital

Ryan Frick of Dorsal Capital

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

At the end of the third quarter, a total of 61 of the hedge funds tracked by Insider Monkey held long positions in this stock, a change of 17% from the second quarter of 2021. Below, you can check out the change in hedge fund sentiment towards PLAN 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.

The largest stake in Anaplan, Inc. (NYSE:PLAN) was held by Cadian Capital, which reported holding $323.8 million worth of stock at the end of September. It was followed by Sculptor Capital with a $245.6 million position. Other investors bullish on the company included Alkeon Capital Management, Steadfast Capital Management, and Eminence Capital. In terms of the portfolio weights assigned to each position Cadian Capital allocated the biggest weight to Anaplan, Inc. (NYSE:PLAN), around 12.22% of its 13F portfolio. Hunt Lane Capital is also relatively very bullish on the stock, dishing out 5.51 percent of its 13F equity portfolio to PLAN.

As aggregate interest increased, specific money managers have jumped into Anaplan, Inc. (NYSE:PLAN) headfirst. Eminence Capital, managed by Ricky Sandler, created the biggest position in Anaplan, Inc. (NYSE:PLAN). Eminence Capital had $164.3 million invested in the company at the end of the quarter. Andrew Immerman and Jeremy Schiffman's Palestra Capital Management also initiated a $164.1 million position during the quarter. The following funds were also among the new PLAN investors: Gavin Baker's Atreides Management, Ryan Frick and Oliver Evans's Dorsal Capital Management, and Josh Donfeld and David Rogers's Castle Hook Partners.

Let's also examine hedge fund activity in other stocks - not necessarily in the same industry as Anaplan, Inc. (NYSE:PLAN) but similarly valued. These stocks are SiteOne Landscape Supply, Inc. (NYSE:SITE), Sibanye Stillwater Limited (NYSE:SBSW), Credicorp Ltd. (NYSE:BAP), Owens Corning (NYSE:OC), Lattice Semiconductor Corporation (NASDAQ:LSCC), Thoughtworks Holding Inc. (NASDAQ:TWKS), and AutoNation, Inc. (NYSE:AN). This group of stocks' market caps are closest to PLAN's market cap.

[table] Ticker, No of HFs with positions, Total Value of HF Positions (x1000), Change in HF Position SITE,15,120291,-10 SBSW,9,141727,-6 BAP,15,188052,-4 OC,24,453991,-10 LSCC,19,366512,-5 TWKS,20,235543,20 AN,29,680901,5 Average,18.7,312431,-1.4 [/table]

View table here if you experience formatting issues.

As you can see these stocks had an average of 18.7 hedge funds with bullish positions and the average amount invested in these stocks was $312 million. That figure was $2812 million in PLAN's case. AutoNation, Inc. (NYSE:AN) is the most popular stock in this table. On the other hand Sibanye Stillwater Limited (NYSE:SBSW) is the least popular one with only 9 bullish hedge fund positions. Compared to these stocks Anaplan, Inc. (NYSE:PLAN) is more popular among hedge funds. Our overall hedge fund sentiment score for PLAN is 89. 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. Unfortunately PLAN wasn't nearly as popular as these 5 stocks and hedge funds that were betting on PLAN were disappointed as the stock returned -29.7% since the end of the third quarter (through 11/30) 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 most of these stocks already outperformed the market since 2019.

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