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Is Box, Inc. (NYSE:BOX) a Good Stock to Buy?

What have hedge funds been doing with Box, Inc. (NYSE:BOX)?

Heading into the fourth quarter of 2018, a total of 26 of the hedge funds tracked by Insider Monkey were bullish on this stock, a change of -4% from one quarter earlier. Below, you can check out the change in hedge fund sentiment towards BOX over the last 13 quarters. So, let’s review which hedge funds were among the top holders of the stock and which hedge funds were making big moves.

BOX_nov2018

The largest stake in Box, Inc. (NYSE:BOX) was held by Bares Capital Management, which reported holding $180.5 million worth of stock at the end of September. It was followed by Renaissance Technologies with a $64.9 million position. Other investors bullish on the company included SQN Investors, Millennium Management, and Harvest Capital Strategies.

Seeing as Box, Inc. (NYSE:BOX) has faced a decline in interest from the aggregate hedge fund industry, it’s safe to say that there lies a certain “tier” of money managers that elected to cut their positions entirely by the end of the third quarter. At the top of the heap, Dmitry Balyasny’s Balyasny Asset Management sold off the largest investment of all the hedgies tracked by Insider Monkey, totaling close to $12.6 million in call options. Andrew Sandler’s fund, Sandler Capital Management, also cut its call options, about $6.3 million worth. These bearish behaviors are interesting, as total hedge fund interest dropped by 1 fund by the end of the third quarter.

Let’s check out hedge fund activity in other stocks similar to Box, Inc. (NYSE:BOX). These stocks are Chimera Investment Corporation (NYSE:CIM), Domtar Corporation (NYSE:UFS), Vonage Holdings Corp. (NYSE:VG), and The Boston Beer Company, Inc. (NYSE:SAM). This group of stocks’ market valuations match BOX’s market valuation.

Ticker No of HFs with positions Total Value of HF Positions (x1000) Change in HF Position
CIM 12 17383 2
UFS 22 231716 -3
VG 26 195159 7
SAM 14 264305 0

As you can see these stocks had an average of 19 hedge funds with bullish positions and the average amount invested in these stocks was $177 million. That figure was $456 million in BOX’s case. Vonage Holdings Corp. (NYSE:VG) is the most popular stock in this table. On the other hand Chimera Investment Corporation (NYSE:CIM) is the least popular one with only 12 bullish hedge fund positions. Box, Inc. (NYSE:BOX) is not the most popular stock in this group but hedge fund interest is still above average. This is a slightly positive signal but we’d rather spend our time researching stocks that hedge funds are piling on. In this regard VG might be a better candidate to consider a long position.

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

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