Is Palantir Technologies Inc. (PLTR) a good stock to buy?

The last 13F reporting period has passed and Insider Monkey is once again at the forefront when it comes to using this data gold mine. Insider Monkey has completed 866 13F cases submitted by hedge funds and leading investors. These documents show the portfolio positions of these funds as of March 31, 2020. What do these smart investors think of Palantir Technologies Inc. (NYSE: PLTR)?

Is PLTR a good stock to buy now? Fund managers were becoming less optimistic. The number of long bets on hedge funds has fallen by 6 recently. Palantir Technologies Inc. (NYSE: PLTR) was listed in 32 hedge fund portfolios at the end of March. The historic high for this statistic is 38. Our calculations also showed that PLTR is not among the 30 most popular stocks among hedge funds (click for Q1 rank).

Why are we paying the least attention to hedge fund sentiment? Our research has shown that a select group of hedge funds have outperformed S&P 500 ETFs by 115 percentage points since March 2017 (see details here). This is why we believe that hedge fund sentiment is an extremely useful indicator that investors should pay attention to.

Stanley Druckenmiller of Duquesne Capital

At Insider Monkey, we scour multiple sources to uncover the next big investing idea. For example, lithium mining is one of the fastest growing industries right now, so we’re looking at stock locations like this. emerging lithium stocks. We go through lists like the top 10 electric vehicle stocks to pick the next Tesla that will deliver 10x yield. Even though we only recommend positions in a tiny fraction of the companies we analyze, we check as many stocks as possible. We read letters from hedge fund investors and listen to equity pitches at hedge fund conferences. You can sign up for our free daily newsletter on our homepage. With all of that in mind, we’ll be checking out new hedge fund action regarding Palantir Technologies Inc. (NYSE: PLTR).

The story continues

Do hedge funds think PLTR is a good stock to buy now?

At the end of the first quarter, 32 of the hedge funds tracked by Insider Monkey held long positions in this stock, a change of -16% from the previous quarter. On the other hand, there was a total of 0 hedge funds with a bullish position in PLTR a year ago. With the change in the hands of smart money capital, there are a few notable hedge fund managers who were significantly increasing their holdings (or already building up significant positions).

According to Insider Monkey’s hedge fund database, ARK Investment Management, managed by Catherine D. Wood, holds the largest position in Palantir Technologies Inc. (NYSE: PLTR). ARK Investment Management holds a position of $ 434 million in the stock, comprising 0.9% of its 13F portfolio. Second is Citadel Investment Group, managed by Ken Griffin, which has a position of $ 296.6 million; the fund has 0.1% of its 13F portfolio invested in the stock. Other smart money members who hold long positions include Duquesne Capital by Stanley Druckenmiller and Peter Rathjens, Bruce Clarke and Arrowstreet Capital by John Campbell. In terms of the portfolio weights assigned to each position, Andar Capital assigned the largest weight to Palantir Technologies Inc. (NYSE: PLTR), approximately 9.21% of its 13F portfolio. Crestwood Capital Management is also relatively very bullish on the stock, designating 6.49% of its 13F equity portfolio at PLTR.

Given that Palantir Technologies Inc. (NYSE: PLTR) has faced bearish sentiment from all of the hedge funds we track, it’s easy to see that a few hedges have chosen to reduce their positions entirely to the last one. trimester. Oddly enough, Steve Cohen’s 72 Investment Holdings have abandoned the larger position of the “top crust” of funds monitored by Insider Monkey, valued at nearly $ 687.7 million in stocks. George Soros’ fund, Soros Fund Management, also sold his shares, worth around $ 434.7 million. These moves are intriguing to say the least, as total hedge fund interest was reduced by 6 funds in the last quarter.

Let’s also look at hedge fund activity in other stocks similar to Palantir Technologies Inc. (NYSE: PLTR). We’ll be looking at EOG Resources Inc (NYSE: EOG), Roper Technologies Inc. (NYSE: ROP), DoorDash, Inc. (NYSE: DASH), American Electric Power Company, Inc. (NASDAQ: AEP), National Grid plc (NYSE: NGG), Roku, Inc. (NASDAQ: ROKU) and IDEXX Laboratories, Inc. (NASDAQ: IDXX). All market capitalizations of these stocks correspond to the market capitalization of PLTR.

[table] Ticker, number of HF with positions, total value of HF positions (x1000), change of HF position EOG, 30.596119, -15 ROP, 42.1497344.2 DASH, 38.4774544.0 AEP, 32.809288.0 NGG, 9.331590.4 ROKU, 63.3781353.3 IDXX, 49.2851712.3 Medium, 37.6,2091707, -0.4 [/table]

Check the table here if you have formatting issues.

As you can see, these stocks had an average of 37.6 hedge funds with bullish positions and the average amount invested in these stocks was $ 2,092 million. That figure was $ 1,147 million in the case of PLTR. Roku, Inc. (NASDAQ: ROKU) is the most popular stock in this table. On the other hand, National Grid plc (NYSE: NGG) is the least popular with only 9 bullish hedge fund positions. Palantir Technologies Inc. (NYSE: PLTR) isn’t the least popular stock in this group, but hedge fund interest is still below average. Our overall hedge fund sentiment score for PLTR is 45.6. Stocks with a higher number of hedge fund positions relative to other stocks as well as relative to their historical range receive a higher sentiment score. This is a slightly negative signal and we prefer to spend our time researching the stocks that hedge funds are accumulating on. Our calculations showed that the 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 2 and again topped the market by 6 percentage points. Unfortunately, the PLTR was not as popular as these 5 stocks (hedge fund sentiment was rather bearish); PLTR investors were disappointed as the stock has returned 4.9% since the end of March (through 7/2) and has underperformed the market. If you want to invest in large cap stocks with huge upside potential, you should check out the 5 most popular stocks among hedge funds, as most of these stocks have already outperformed the market in 2021.

Receive real-time email alerts: Follow Palantir Technologies Inc. (NYSE: PLTR)

Suggested articles:

Disclosure: none. This article originally appeared on Insider Monkey.