Is CDE A Good Stock To Buy Now?
The 800+ hedge funds and famous money managers tracked by Insider Monkey have already compiled and submitted their 13F filings for the third quarter, which unveil their equity positions as of September 30. We went through these filings, fixed typos and other more significant errors and identified the changes in hedge fund portfolios. Our extensive review of these public filings is finally over, so this article is set to reveal the smart money sentiment towards Coeur Mining, Inc. (NYSE:CDE).
Is CDE a good stock to buy now? Coeur Mining, Inc. (NYSE:CDE) has seen an increase in hedge fund interest recently. Coeur Mining, Inc. (NYSE:CDE) was in 15 hedge funds' portfolios at the end of September. The all time high for this statistic is 26. There were 14 hedge funds in our database with CDE holdings at the end of June. Our calculations also showed that CDE isn't among the 30 most popular stocks among hedge funds (click for Q3 rankings and see the video for a quick look at the top 5 stocks).
Video: Watch our video about the top 5 most popular hedge fund stocks.
To most shareholders, hedge funds are seen as underperforming, outdated financial vehicles of the past. While there are over 8000 funds with their doors open at the moment, We look at the bigwigs of this club, approximately 850 funds. These hedge fund managers direct the majority of all hedge funds' total asset base, and by keeping an eye on their matchless stock picks, Insider Monkey has come up with a number of investment strategies that have historically outstripped the broader indices. Insider Monkey's flagship short hedge fund strategy outpaced the S&P 500 short ETFs by around 20 percentage points per year since its inception in March 2017. Our portfolio of short stocks lost 13% since February 2017 (through November 17th) even though the market was up 65% during the same period. We just shared a list of 6 short targets in our latest quarterly update .
Ken Griffin of Citadel Investment Group
At Insider Monkey we scour multiple sources to uncover the next great investment idea. For example, Federal Reserve has been creating trillions of dollars electronically to keep the interest rates near zero. We believe this will lead to inflation and boost real estate prices. So, we recommended this real estate stock to our monthly premium newsletter subscribers. We go through lists like the 15 best blue chip stocks to pick the best large-cap stocks to buy. 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. Now we're going to review the latest hedge fund action regarding Coeur Mining, Inc. (NYSE:CDE).
Do Hedge Funds Think CDE Is A Good Stock To Buy Now?
At third quarter's end, a total of 15 of the hedge funds tracked by Insider Monkey were long this stock, a change of 7% from the previous quarter. On the other hand, there were a total of 15 hedge funds with a bullish position in CDE 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.
The largest stake in Coeur Mining, Inc. (NYSE:CDE) was held by Sprott Asset Management, which reported holding $17.6 million worth of stock at the end of September. It was followed by Portolan Capital Management with a $7.2 million position. Other investors bullish on the company included Lansdowne Partners, D E Shaw, and Citadel Investment Group. In terms of the portfolio weights assigned to each position Portolan Capital Management allocated the biggest weight to Coeur Mining, Inc. (NYSE:CDE), around 0.82% of its 13F portfolio. Sprott Asset Management is also relatively very bullish on the stock, setting aside 0.72 percent of its 13F equity portfolio to CDE.
As industrywide interest jumped, specific money managers were leading the bulls' herd. Lansdowne Partners, managed by Suzi Nutton (CEO), assembled the most valuable position in Coeur Mining, Inc. (NYSE:CDE). Lansdowne Partners had $6.5 million invested in the company at the end of the quarter. Greg Eisner's Engineers Gate Manager also made a $1.6 million investment in the stock during the quarter. The other funds with brand new CDE positions are Minhua Zhang's Weld Capital Management and Karim Abbadi and Edward McBride's Centiva Capital.
Let's now review hedge fund activity in other stocks similar to Coeur Mining, Inc. (NYSE:CDE). These stocks are Jack in the Box Inc. (NASDAQ:JACK), Grupo Aeroportuario del Centro Nort (NASDAQ:OMAB), Cerence Inc. (NASDAQ:CRNC), Assured Guaranty Ltd. (NYSE:AGO), AtriCure Inc. (NASDAQ:ATRC), The Goodyear Tire & Rubber Company (NASDAQ:GT), and Rush Enterprises, Inc. (NASDAQ:RUSHB). This group of stocks' market values are closest to CDE's market value.
[table] Ticker, No of HFs with positions, Total Value of HF Positions (x1000), Change in HF Position JACK,38,314788,7 OMAB,7,28689,3 CRNC,12,135180,-2 AGO,27,205479,2 ATRC,21,224194,-2 GT,24,166177,3 RUSHB,2,37287,-2 Average,18.7,158828,1.3 [/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 $159 million. That figure was $45 million in CDE's case. Jack in the Box Inc. (NASDAQ:JACK) is the most popular stock in this table. On the other hand Rush Enterprises, Inc. (NASDAQ:RUSHB) is the least popular one with only 2 bullish hedge fund positions. Coeur Mining, Inc. (NYSE:CDE) is not the least popular stock in this group but hedge fund interest is still below average. Our overall hedge fund sentiment score for CDE is 41.4. 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 20 most popular stocks among hedge funds returned 41.3% in 2019 and outperformed the S&P 500 ETF (SPY) by 10 percentage points. These stocks gained 30.7% in 2020 through December 14th and still beat the market by 15.8 percentage points. A small number of hedge funds were also right about betting on CDE as the stock returned 11.9% since the end of the third quarter (through 12/14) and outperformed the market by an even larger margin.
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Disclosure: None. This article was originally published at Insider Monkey.
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