Is Xtant Medical Holdings, Inc. (XTNT) A Good Stock To Buy?
The financial regulations require hedge funds and wealthy investors that exceeded the $100 million equity holdings threshold to file a report that shows their positions at the end of every quarter. Even though it isn't the intention, these filings to a certain extent level the playing field for ordinary investors. The latest round of 13F filings disclosed the funds' positions on September 30th, about a month before the elections. We at Insider Monkey have made an extensive database of more than 817 of those established hedge funds and famous value investors' filings. In this article, we analyze how these elite funds and prominent investors traded Xtant Medical Holdings, Inc. (NYSE:XTNT) based on those filings.
Xtant Medical Holdings, Inc. (NYSE:XTNT) was in 3 hedge funds' portfolios at the end of the third quarter of 2020. The all time high for this statistics is 3. This means the bullish number of hedge fund positions in this stock currently sits at its all time high. XTNT has experienced an increase in hedge fund interest of late. There were 2 hedge funds in our database with XTNT positions at the end of the second quarter. Our calculations also showed that XTNT 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.
Today there are numerous tools investors can use to assess stocks. Some of the less known tools are hedge fund and insider trading indicators. Our experts have shown that, historically, those who follow the top picks of the best investment managers can outclass the market by a healthy amount (see the details here).
David Siegel of Two Sigma Advisors
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 10 most profitable companies in the world 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 look at the recent hedge fund action encompassing Xtant Medical Holdings, Inc. (NYSE:XTNT).
How have hedgies been trading Xtant Medical Holdings, Inc. (NYSE:XTNT)?
At Q3's end, a total of 3 of the hedge funds tracked by Insider Monkey were long this stock, a change of 50% from one quarter earlier. On the other hand, there were a total of 3 hedge funds with a bullish position in XTNT a year ago. So, let's examine which hedge funds were among the top holders of the stock and which hedge funds were making big moves.
The largest stake in Xtant Medical Holdings, Inc. (NYSE:XTNT) was held by OrbiMed Advisors, which reported holding $7.6 million worth of stock at the end of September. It was followed by Renaissance Technologies with a $0.3 million position. The only other hedge fund that is bullish on the company was Two Sigma Advisors.
Now, some big names were breaking ground themselves. Two Sigma Advisors, managed by John Overdeck and David Siegel, created the biggest position in Xtant Medical Holdings, Inc. (NYSE:XTNT). Two Sigma Advisors had $0 million invested in the company at the end of the quarter.
Let's go over hedge fund activity in other stocks similar to Xtant Medical Holdings, Inc. (NYSE:XTNT). These stocks are SemiLEDs Corporation (NASDAQ:LEDS), Medigus Ltd. (NASDAQ:MDGS), InspireMD Inc (NYSE:NSPR), B.O.S. Better Online Solutions Ltd. (NASDAQ:BOSC), Superior Drilling Products, Inc. (NYSE:SDPI), Cancer Genetics Inc (NASDAQ:CGIX), and Creative Realities, Inc. (NASDAQ:CREX). This group of stocks' market valuations match XTNT's market valuation.
[table] Ticker, No of HFs with positions, Total Value of HF Positions (x1000), Change in HF Position LEDS,1,585,-2 MDGS,4,1058,1 NSPR,4,143,1 BOSC,1,386,0 SDPI,2,212,1 CGIX,1,803,0 CREX,1,28,0 Average,2,459,0.1 [/table]
View table here if you experience formatting issues.
As you can see these stocks had an average of 2 hedge funds with bullish positions and the average amount invested in these stocks was $0 million. That figure was $8 million in XTNT's case. Medigus Ltd. (NASDAQ:MDGS) is the most popular stock in this table. On the other hand SemiLEDs Corporation (NASDAQ:LEDS) is the least popular one with only 1 bullish hedge fund positions. Xtant Medical Holdings, Inc. (NYSE:XTNT) is not the most popular stock in this group but hedge fund interest is still above average. Our overall hedge fund sentiment score for XTNT is 69.3. 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 28.1% in 2020 through November 23rd and still beat the market by 15.4 percentage points. Hedge funds were also right about betting on XTNT as the stock returned 50% since the end of Q3 (through 11/23) and outperformed the market. Hedge funds were rewarded for their relative bullishness.
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Disclosure: None. This article was originally published at Insider Monkey.
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