Is INBX A Good Stock To Buy Now?
In this article you are going to find out whether hedge funds think Inhibrx, Inc. (NASDAQ:INBX) is a good investment right now. We like to check what the smart money thinks first before doing extensive research on a given stock. Although there have been several high profile failed hedge fund picks, the consensus picks among hedge fund investors have historically outperformed the market after adjusting for known risk attributes. It's not surprising given that hedge funds have access to better information and more resources to predict the winners in the stock market.
Is INBX a good stock to buy now? Prominent investors were getting more optimistic. The number of long hedge fund bets increased by 10 lately. Inhibrx, Inc. (NASDAQ:INBX) was in 10 hedge funds' portfolios at the end of the third quarter of 2020. Our calculations also showed that INBX 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.
In the financial world there are numerous tools investors use to grade their holdings. Some of the less known tools are hedge fund and insider trading signals. We have shown that, historically, those who follow the top picks of the top fund managers can beat the broader indices by a healthy margin (see the details here).
Andreas Halvorsen of Viking Global
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. With all of this in mind we're going to take a glance at the recent hedge fund action regarding Inhibrx, Inc. (NASDAQ:INBX).
Do Hedge Funds Think INBX Is A Good Stock To Buy Now?
At Q3's end, a total of 10 of the hedge funds tracked by Insider Monkey were bullish on this stock, a change of 10 from the previous quarter. The graph below displays the number of hedge funds with bullish position in INBX over the last 21 quarters. So, let's find out which hedge funds were among the top holders of the stock and which hedge funds were making big moves.
More specifically, Viking Global was the largest shareholder of Inhibrx, Inc. (NASDAQ:INBX), with a stake worth $95.5 million reported as of the end of September. Trailing Viking Global was RA Capital Management, which amassed a stake valued at $38.3 million. Tybourne Capital Management, Soleus Capital, and Farallon 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 Soleus Capital allocated the biggest weight to Inhibrx, Inc. (NASDAQ:INBX), around 3.88% of its 13F portfolio. Logos Capital is also relatively very bullish on the stock, earmarking 0.74 percent of its 13F equity portfolio to INBX.
As aggregate interest increased, some big names have been driving this bullishness. Viking Global, managed by Andreas Halvorsen, created the most outsized position in Inhibrx, Inc. (NASDAQ:INBX). Viking Global had $95.5 million invested in the company at the end of the quarter. Peter Kolchinsky's RA Capital Management also made a $38.3 million investment in the stock during the quarter. The following funds were also among the new INBX investors: Eashwar Krishnan's Tybourne Capital Management, Guy Levy's Soleus Capital, and Farallon Capital.
Let's now review hedge fund activity in other stocks - not necessarily in the same industry as Inhibrx, Inc. (NASDAQ:INBX) but similarly valued. We will take a look at TCR2 Therapeutics Inc. (NASDAQ:TCRR), Brookfield Property REIT Inc. (NASDAQ:BPYU), Kelly Services, Inc. (NASDAQ:KELYA), Unisys Corporation (NYSE:UIS), MGP Ingredients Inc (NASDAQ:MGPI), The Shyft Group, Inc. (NASDAQ:SHYF), and Kadmon Holdings, Inc. (NASDAQ:KDMN). All of these stocks' market caps match INBX's market cap.
[table] Ticker, No of HFs with positions, Total Value of HF Positions (x1000), Change in HF Position TCRR,13,179036,5 BPYU,12,76324,0 KELYA,9,10589,-2 UIS,14,55912,-5 MGPI,11,19354,-2 SHYF,13,71919,-5 KDMN,24,304665,-5 Average,13.7,102543,-2 [/table]
View table here if you experience formatting issues.
As you can see these stocks had an average of 13.7 hedge funds with bullish positions and the average amount invested in these stocks was $103 million. That figure was $177 million in INBX's case. Kadmon Holdings, Inc. (NASDAQ:KDMN) is the most popular stock in this table. On the other hand Kelly Services, Inc. (NASDAQ:KELYA) is the least popular one with only 9 bullish hedge fund positions. Inhibrx, Inc. (NASDAQ:INBX) is not the least popular stock in this group but hedge fund interest is still below average. Our overall hedge fund sentiment score for INBX is 15.3. 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 32.9% in 2020 through December 8th and still beat the market by 16.2 percentage points. A small number of hedge funds were also right about betting on INBX as the stock returned 91.3% since the end of the third quarter (through 12/8) and outperformed the market by an even larger margin.
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Disclosure: None. This article was originally published at Insider Monkey.