U.S. Markets open in 5 hrs 5 mins
  • S&P Futures

    3,828.50
    +3.00 (+0.08%)
     
  • Dow Futures

    30,962.00
    +29.00 (+0.09%)
     
  • Nasdaq Futures

    11,684.25
    +10.00 (+0.09%)
     
  • Russell 2000 Futures

    1,740.30
    +2.00 (+0.12%)
     
  • Crude Oil

    111.81
    +0.05 (+0.04%)
     
  • Gold

    1,817.40
    -3.80 (-0.21%)
     
  • Silver

    20.82
    -0.06 (-0.27%)
     
  • EUR/USD

    1.0521
    -0.0004 (-0.0421%)
     
  • 10-Yr Bond

    3.2060
    0.0000 (0.00%)
     
  • Vix

    28.53
    +1.58 (+5.86%)
     
  • GBP/USD

    1.2191
    +0.0007 (+0.0561%)
     
  • USD/JPY

    136.1500
    +0.0220 (+0.0162%)
     
  • BTC-USD

    20,115.57
    -770.17 (-3.69%)
     
  • CMC Crypto 200

    435.44
    -14.62 (-3.25%)
     
  • FTSE 100

    7,287.50
    -35.91 (-0.49%)
     
  • Nikkei 225

    26,804.60
    -244.87 (-0.91%)
     

Hedge Funds Are Souring On Concentrix Corporation (CNXC)

  • Oops!
    Something went wrong.
    Please try again later.
·5 min read
In this article:
  • Oops!
    Something went wrong.
    Please try again later.

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 873 13F filings submitted by hedge funds and prominent investors. These filings show these funds' portfolio positions as of June 30th, 2021. In this article we are going to take a look at smart money sentiment towards Concentrix Corporation (NASDAQ:CNXC).

Concentrix Corporation (NASDAQ:CNXC) was in 21 hedge funds' portfolios at the end of June. The all time high for this statistic is 23. CNXC investors should be aware of a decrease in activity from the world's largest hedge funds recently. There were 23 hedge funds in our database with CNXC positions at the end of the first quarter. Our calculations also showed that CNXC isn't among the 30 most popular stocks among hedge funds (click for Q2 rankings).

In today’s marketplace there are tons of formulas investors can use to size up stocks. A pair of the most innovative formulas are hedge fund and insider trading signals. Our researchers have shown that, historically, those who follow the top picks of the elite money managers can outpace the market by a very impressive margin (see the details here). Also, our monthly newsletter's portfolio of long stock picks returned 185.4% since March 2017 (through August 2021) and beat the S&P 500 Index by more than 79 percentage points. You can download a sample issue of this newsletter on our website.

Greenlight Capital
Greenlight Capital

At Insider Monkey, we scour multiple sources to uncover the next great investment idea. For example, lithium mining is one of the fastest growing industries right now, so we are checking out stock pitches like this emerging lithium stock. 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. 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 homepage. Now we're going to check out the latest hedge fund action encompassing Concentrix Corporation (NASDAQ:CNXC).

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

At second quarter's end, a total of 21 of the hedge funds tracked by Insider Monkey were bullish on this stock, a change of -9% from the previous quarter. On the other hand, there were a total of 0 hedge funds with a bullish position in CNXC 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.

Is CNXC A Good Stock To Buy?
Is CNXC A Good Stock To Buy?

Among these funds, Lyrical Asset Management held the most valuable stake in Concentrix Corporation (NASDAQ:CNXC), which was worth $167.3 million at the end of the second quarter. On the second spot was Abrams Bison Investments which amassed $150.7 million worth of shares. Greenlight Capital, Alyeska Investment Group, and Arrowstreet 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 Abrams Bison Investments allocated the biggest weight to Concentrix Corporation (NASDAQ:CNXC), around 13.06% of its 13F portfolio. Greenlight Capital is also relatively very bullish on the stock, dishing out 3.94 percent of its 13F equity portfolio to CNXC.

Seeing as Concentrix Corporation (NASDAQ:CNXC) has faced falling interest from the entirety of the hedge funds we track, we can see that there was a specific group of money managers who were dropping their entire stakes by the end of the second quarter. Intriguingly, Matthew Hulsizer's PEAK6 Capital Management dropped the largest position of the 750 funds followed by Insider Monkey, comprising an estimated $1.9 million in stock, and Parvinder Thiara's Athanor Capital was right behind this move, as the fund dropped about $1.4 million worth. These transactions are important to note, as total hedge fund interest was cut by 2 funds by the end of the second quarter.

Let's now review hedge fund activity in other stocks - not necessarily in the same industry as Concentrix Corporation (NASDAQ:CNXC) but similarly valued. We will take a look at National Retail Properties, Inc. (NYSE:NNN), Ovintiv Inc. (NYSE:OVV), Plains All American Pipeline, L.P. (NYSE:PAA), Apache Corporation (NYSE:APA), First Citizens BancShares Inc. (NASDAQ:FCNCA), Fate Therapeutics Inc (NASDAQ:FATE), and ContextLogic Inc. (NASDAQ:WISH). All of these stocks' market caps are closest to CNXC's market cap.

[table] Ticker, No of HFs with positions, Total Value of HF Positions (x1000), Change in HF Position NNN,19,188064,-3 OVV,40,739285,10 PAA,7,65969,0 APA,37,619470,-5 FCNCA,21,686867,-8 FATE,40,2766550,1 WISH,21,139664,-4 Average,26.4,743696,-1.3 [/table]

View table here if you experience formatting issues.

As you can see these stocks had an average of 26.4 hedge funds with bullish positions and the average amount invested in these stocks was $744 million. That figure was $601 million in CNXC's case. Ovintiv Inc. (NYSE:OVV) is the most popular stock in this table. On the other hand Plains All American Pipeline, L.P. (NYSE:PAA) is the least popular one with only 7 bullish hedge fund positions. Concentrix Corporation (NASDAQ:CNXC) is not the least popular stock in this group but hedge fund interest is still below average. Our overall hedge fund sentiment score for CNXC is 51.6. 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 24% in 2021 through October 22nd and still beat the market by 1.6 percentage points. A small number of hedge funds were also right about betting on CNXC as the stock returned 15.2% since the end of the second quarter (through 10/22) and outperformed the market by an even larger margin.

Get real-time email alerts: Follow Concentrix Corp (NASDAQ:CNXC)

Suggested Articles:

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