Before we spend countless hours researching a company, we like to analyze what insiders, hedge funds and billionaire investors think of the stock first. This is a necessary first step in our investment process because our research has shown that the elite investors’ consensus returns have been exceptional. In the following paragraphs, we find out what the billionaire investors and hedge funds think of Tenable Holdings, Inc. (NASDAQ:TENB).
Is Tenable Holdings, Inc. (NASDAQ:TENB) an attractive investment today? Hedge funds were cutting their exposure. The number of bullish hedge fund positions were cut by 4 in recent months. Tenable Holdings, Inc. (NASDAQ:TENB) was in 29 hedge funds’ portfolios at the end of September. The all time high for this statistic is 39. Our calculations also showed that TENB isn’t among the 30 most popular stocks among hedge funds (click for Q3 rankings).
At Insider Monkey, we scour multiple sources to uncover the next great investment idea. For example, lithium prices have more than doubled over the past year, so 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. With all of this in mind let’s analyze the recent hedge fund action surrounding Tenable Holdings, Inc. (NASDAQ:TENB).
Steven Cohen of Point72 Asset Management
Do Hedge Funds Think TENB Is A Good Stock To Buy Now?
At the end of the third quarter, a total of 29 of the hedge funds tracked by Insider Monkey were long this stock, a change of -12% from the previous quarter. Below, you can check out the change in hedge fund sentiment towards TENB over the last 25 quarters. 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 Tenable Holdings, Inc. (NASDAQ:TENB) was held by RGM Capital, which reported holding $155.9 million worth of stock at the end of September. It was followed by Greenvale Capital with a $129.2 million position. Other investors bullish on the company included Polar Capital, Washington Harbour Partners, and Point72 Asset Management. In terms of the portfolio weights assigned to each position Toronado Partners allocated the biggest weight to Tenable Holdings, Inc. (NASDAQ:TENB), around 16.4% of its 13F portfolio. Greenvale Capital is also relatively very bullish on the stock, setting aside 15.58 percent of its 13F equity portfolio to TENB.
Seeing as Tenable Holdings, Inc. (NASDAQ:TENB) has experienced a decline in interest from the entirety of the hedge funds we track, it’s easy to see that there lies a certain “tier” of funds that slashed their positions entirely heading into Q4. At the top of the heap, Richard SchimeláandáLawrence Sapanski’s Cinctive Capital Management cut the biggest stake of the “upper crust” of funds monitored by Insider Monkey, valued at close to $3.2 million in stock, and Jinghua Yan’s TwinBeech Capital was right behind this move, as the fund said goodbye to about $1.4 million worth. These bearish behaviors are important to note, as aggregate hedge fund interest was cut by 4 funds heading into Q4.
Let’s also examine hedge fund activity in other stocks – not necessarily in the same industry as Tenable Holdings, Inc. (NASDAQ:TENB) but similarly valued. We will take a look at Alteryx, Inc. (NYSE:AYX), Melco Resorts & Entertainment Limited (NASDAQ:MLCO), Herbalife Nutrition Ltd. (NYSE:HLF), National Beverage Corp. (NASDAQ:FIZZ), Pan American Silver Corp. (NASDAQ:PAAS), PowerSchool Holdings Inc. (NYSE:PWSC), and Victorias Secret & Co. (NYSE:VSCO). All of these stocks’ market caps resemble TENB’s market cap.
| Ticker | No of HFs with positions | Total Value of HF Positions (x1000) | Change in HF Position |
|---|---|---|---|
| AYX | 37 | 856548 | 4 |
| MLCO | 27 | 469516 | -2 |
| HLF | 38 | 1809059 | -2 |
| FIZZ | 17 | 281959 | -4 |
| PAAS | 22 | 251670 | -2 |
| PWSC | 11 | 2277988 | 11 |
| VSCO | 37 | 1962390 | 37 |
| Average | 27 | 1129876 | 6 |
View table here if you experience formatting issues.
As you can see these stocks had an average of 27 hedge funds with bullish positions and the average amount invested in these stocks was $1130 million. That figure was $775 million in TENB’s case. Herbalife Nutrition Ltd. (NYSE:HLF) is the most popular stock in this table. On the other hand PowerSchool Holdings Inc. (NYSE:PWSC) is the least popular one with only 11 bullish hedge fund positions. Tenable Holdings, Inc. (NASDAQ:TENB) is not the most popular stock in this group but hedge fund interest is still above average. Our overall hedge fund sentiment score for TENB is 56.6. 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 28.6% in 2021 through November 30th and still beat the market by 5.6 percentage points. Hedge funds were also right about betting on TENB as the stock returned 7.1% since the end of Q3 (through 11/30) and outperformed the market. Hedge funds were rewarded for their relative bullishness.
Follow Tenable Holdings Inc. (NASDAQ:TENB)
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Disclosure: None. This article was originally published at Insider Monkey.
