U.S. Markets open in 9 hrs 8 mins
  • S&P Futures

    4,699.50
    +14.50 (+0.31%)
     
  • Dow Futures

    35,787.00
    +74.00 (+0.21%)
     
  • Nasdaq Futures

    16,388.50
    +70.50 (+0.43%)
     
  • Russell 2000 Futures

    2,263.60
    +9.70 (+0.43%)
     
  • Crude Oil

    71.79
    -0.26 (-0.36%)
     
  • Gold

    1,790.40
    +5.70 (+0.32%)
     
  • Silver

    22.51
    -0.01 (-0.06%)
     
  • EUR/USD

    1.1294
    +0.0022 (+0.1920%)
     
  • 10-Yr Bond

    1.4800
    +0.0320 (+2.21%)
     
  • Vix

    21.89
    -6.06 (-21.68%)
     
  • GBP/USD

    1.3256
    +0.0014 (+0.1074%)
     
  • USD/JPY

    113.4900
    -0.0500 (-0.0440%)
     
  • BTC-USD

    50,375.27
    -731.66 (-1.43%)
     
  • CMC Crypto 200

    1,305.57
    -136.19 (-9.45%)
     
  • FTSE 100

    7,339.90
    +210.69 (+2.96%)
     
  • Nikkei 225

    28,854.85
    +399.25 (+1.40%)
     

Where Do Hedge Funds Stand On Cyberark Software Ltd (CYBR)?

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

After several tireless days we have finished crunching the numbers from nearly 900 13F filings issued by the elite hedge funds and other investment firms that we track at Insider Monkey, which disclosed those firms' equity portfolios as of March 31st. The results of that effort will be put on display in this article, as we share valuable insight into the smart money sentiment towards Cyberark Software Ltd (NASDAQ:CYBR).

Cyberark Software Ltd (NASDAQ:CYBR) was in 32 hedge funds' portfolios at the end of March. The all time high for this statistic was previously 28. This means the bullish number of hedge fund positions in this stock currently sits at its all time high. CYBR has experienced an increase in enthusiasm from smart money lately. There were 27 hedge funds in our database with CYBR positions at the end of the fourth quarter. Our calculations also showed that CYBR isn't among the 30 most popular stocks among hedge funds (click for Q1 rankings).

In the 21st century investor’s toolkit there are many gauges shareholders use to assess publicly traded companies. A couple of the most under-the-radar gauges are hedge fund and insider trading signals. Our researchers have shown that, historically, those who follow the best picks of the elite hedge fund managers can outperform their index-focused peers by a solid margin (see the details here). Also, our monthly newsletter's portfolio of long stock picks returned 206.8% since March 2017 (through May 2021) and beat the S&P 500 Index by more than 115 percentage points. You can download a sample issue of this newsletter on our website .

Tim Woolley of Polar 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. With all of this in mind let's take a look at the fresh hedge fund action surrounding Cyberark Software Ltd (NASDAQ:CYBR).

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

At the end of the first quarter, a total of 32 of the hedge funds tracked by Insider Monkey were bullish on this stock, a change of 19% from one quarter earlier. Below, you can check out the change in hedge fund sentiment towards CYBR over the last 23 quarters. With the smart money's sentiment swirling, there exists a select group of notable hedge fund managers who were upping their stakes substantially (or already accumulated large positions).

Among these funds, RGM Capital held the most valuable stake in Cyberark Software Ltd (NASDAQ:CYBR), which was worth $124.7 million at the end of the fourth quarter. On the second spot was Polar Capital which amassed $79.3 million worth of shares. Alyeska Investment Group, Renaissance Technologies, and Two Sigma Advisors 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 North Run Capital allocated the biggest weight to Cyberark Software Ltd (NASDAQ:CYBR), around 9.05% of its 13F portfolio. RGM Capital is also relatively very bullish on the stock, earmarking 5.46 percent of its 13F equity portfolio to CYBR.

As industrywide interest jumped, specific money managers were breaking ground themselves. Alyeska Investment Group, managed by Anand Parekh, assembled the largest position in Cyberark Software Ltd (NASDAQ:CYBR). Alyeska Investment Group had $35.3 million invested in the company at the end of the quarter. Renaissance Technologies also initiated a $33.8 million position during the quarter. The other funds with new positions in the stock are Dmitry Balyasny's Balyasny Asset Management, John Brennan's Sirios Capital Management, and Doron Breen and Mori Arkin's Sphera Global Healthcare Fund.

Let's also examine hedge fund activity in other stocks - not necessarily in the same industry as Cyberark Software Ltd (NASDAQ:CYBR) but similarly valued. These stocks are Valmont Industries, Inc. (NYSE:VMI), Exponent, Inc. (NASDAQ:EXPO), IDACORP Inc (NYSE:IDA), Amyris Inc (NASDAQ:AMRS), RLI Corp. (NYSE:RLI), Flowers Foods, Inc. (NYSE:FLO), and MSC Industrial Direct Co Inc (NYSE:MSM). This group of stocks' market values match CYBR's market value.

[table] Ticker, No of HFs with positions, Total Value of HF Positions (x1000), Change in HF Position VMI,23,401266,-3 EXPO,17,63144,2 IDA,17,174429,3 AMRS,14,641287,-1 RLI,14,189969,-1 FLO,26,301870,-1 MSM,20,393613,2 Average,18.7,309368,0.1 [/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 $309 million. That figure was $503 million in CYBR's case. Flowers Foods, Inc. (NYSE:FLO) is the most popular stock in this table. On the other hand Amyris Inc (NASDAQ:AMRS) is the least popular one with only 14 bullish hedge fund positions. Compared to these stocks Cyberark Software Ltd (NASDAQ:CYBR) is more popular among hedge funds. Our overall hedge fund sentiment score for CYBR is 90. 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 22.8% in 2021 through July 2nd and still beat the market by 6 percentage points. Unfortunately CYBR wasn't nearly as popular as these 5 stocks and hedge funds that were betting on CYBR were disappointed as the stock returned 2.4% since the end of the first quarter (through 7/2) 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.

Get real-time email alerts: Follow Cyberark Software Ltd. (NASDAQ:CYBR)

Suggested Articles:

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