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At Insider Monkey, we pore over the filings of nearly 867 top investment firms every quarter, a process we have now completed for the latest reporting period. The data we've gathered as a result gives us access to a wealth of collective knowledge based on these firms' portfolio holdings as of September 30th. In this article, we will use that wealth of knowledge to determine whether or not The Joint Corp. (NASDAQ:JYNT) makes for a good investment right now.
Hedge fund interest in The Joint Corp. (NASDAQ:JYNT) shares was flat at the end of last quarter. This is usually a negative indicator. Our calculations also showed that JYNT isn't among the 30 most popular stocks among hedge funds (click for Q2 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 Holley Inc. (NYSE:HLLY), Stratasys, Ltd. (NASDAQ:SSYS), and The Liberty Braves Group (NASDAQ:BATRA) to gather more data points.
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 analyze the new hedge fund action surrounding The Joint Corp. (NASDAQ:JYNT).
Ray Dalio of Bridgewater Associates
Do Hedge Funds Think JYNT Is A Good Stock To Buy Now?
At the end of the third quarter, a total of 22 of the hedge funds tracked by Insider Monkey were bullish on this stock, a change of 0% from the second quarter of 2021. The graph below displays the number of hedge funds with bullish position in JYNT over the last 25 quarters. With the smart money's capital changing hands, there exists a select group of key hedge fund managers who were upping their stakes meaningfully (or already accumulated large positions).
Among these funds, Skylands Capital held the most valuable stake in The Joint Corp. (NASDAQ:JYNT), which was worth $32.4 million at the end of the third quarter. On the second spot was Bandera Partners which amassed $14.7 million worth of shares. Two Sigma Advisors, SW Investment Management, and Renaissance Technologies 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 Bandera Partners allocated the biggest weight to The Joint Corp. (NASDAQ:JYNT), around 5.93% of its 13F portfolio. SW Investment Management is also relatively very bullish on the stock, dishing out 4.87 percent of its 13F equity portfolio to JYNT.
Since The Joint Corp. (NASDAQ:JYNT) has experienced declining sentiment from the aggregate hedge fund industry, we can see that there is a sect of funds that slashed their full holdings heading into Q4. It's worth mentioning that Andrew Bellas's General Equity Partners dropped the largest investment of the 750 funds followed by Insider Monkey, worth about $10.8 million in stock, and Dmitry Balyasny's Balyasny Asset Management was right behind this move, as the fund said goodbye to about $1 million worth. These transactions are interesting, as aggregate hedge fund interest stayed the same (this is a bearish signal in our experience).
Let's now take a look at hedge fund activity in other stocks similar to The Joint Corp. (NASDAQ:JYNT). We will take a look at Holley Inc. (NYSE:HLLY), Stratasys, Ltd. (NASDAQ:SSYS), The Liberty Braves Group (NASDAQ:BATRA), James River Group Holdings Ltd (NASDAQ:JRVR), Tremor International Ltd (NASDAQ:TRMR), Purple Innovation, Inc. (NASDAQ:PRPL), and Materion Corp (NYSE:MTRN). This group of stocks' market caps are similar to JYNT's market cap.
[table] Ticker, No of HFs with positions, Total Value of HF Positions (x1000), Change in HF Position HLLY,15,88589,15 SSYS,21,270219,0 BATRA,11,72935,-3 JRVR,17,206488,2 TRMR,11,74796,11 PRPL,17,370706,-8 MTRN,14,92779,-1 Average,15.1,168073,2.3 [/table]
View table here if you experience formatting issues.
As you can see these stocks had an average of 15.1 hedge funds with bullish positions and the average amount invested in these stocks was $168 million. That figure was $121 million in JYNT's case. Stratasys, Ltd. (NASDAQ:SSYS) is the most popular stock in this table. On the other hand The Liberty Braves Group (NASDAQ:BATRA) is the least popular one with only 11 bullish hedge fund positions. Compared to these stocks The Joint Corp. (NASDAQ:JYNT) is more popular among hedge funds. Our overall hedge fund sentiment score for JYNT is 85. 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 29.6% in 2021 and still beat the market by 3.6 percentage points. Unfortunately JYNT wasn't nearly as popular as these 5 stocks and hedge funds that were betting on JYNT were disappointed as the stock returned -33% since the end of the third quarter (through 12/31) 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.