Splunk Inc (SPLK) Tops Revenue Estimates, But Shares Shrink: Is This A Buying Opportunity?

As aggregate interest increased in Q1, key hedge funds were driving this bullishness. Coatue Management created the biggest position in Splunk Inc (NASDAQ:SPLK), having $108.2 million invested in the company at the end of the quarter. Karthik Sarma’s SRS Investment Management also made a $25.2 million investment in the stock during the quarter. The other funds with brand new SPLK positions are Glenn Russell Dubin’s Highbridge Capital Management, Jim Simons’ Renaissance Technologies, and Christopher Zepf and Brian Thonn’s Kingdom Ridge Capital.

Let’s also examine hedge fund activity in other stocks similar to Splunk Inc (NASDAQ:SPLK). These stocks are Helmerich & Payne, Inc. (NYSE:HP), Harman International Industries Inc./DE/ (NYSE:HAR), IDEX Corporation (NYSE:IEX), and RPM International Inc. (NYSE:RPM). This group of stocks’ market valuations are closest to SPLK’s market valuation.

As you can see these stocks had an average of 21 hedge funds with bullish positions and the average amount invested in these stocks was $270 million. That figure was $572 million in SPLK’s case. Helmerich & Payne, Inc. (NYSE:HP) is the most popular stock in this table. On the other hand IDEX Corporation (NYSE:IEX) is the least popular one with only 14 bullish hedge fund positions. Compared to these stocks Splunk Inc (NASDAQ:SPLK) is more popular among hedge funds. Considering that hedge funds are fond of this stock in relation to its market cap peers and sentiment rose dramatically during Q1, it may be a good idea to analyze it in detail and potentially include it in your portfolio.

Disclosure: None