Is Angi Inc. (ANGI) A Good Stock To Buy?

In this article we are going to use hedge fund sentiment as a tool and determine whether Angi Inc. (NASDAQ:ANGI) is a good investment right now. We like to analyze hedge fund sentiment before conducting days of in-depth research. We do so because hedge funds and other elite investors have numerous Ivy League graduates, expert network advisers, and supply chain tipsters working or consulting for them. There is not a shortage of news stories covering failed hedge fund investments and it is a fact that hedge funds’ picks don’t beat the market 100% of the time, but their consensus picks have historically done very well and have outperformed the market after adjusting for risk.

Is ANGI a good stock to buy? Angi Inc. (NASDAQ:ANGI) has seen a decrease in hedge fund interest recently. Angi Inc. (NASDAQ:ANGI) was in 26 hedge funds’ portfolios at the end of the second quarter of 2021. The all time high for this statistic is 48. There were 35 hedge funds in our database with ANGI positions at the end of the first quarter. Our calculations also showed that ANGI isn’t among the 30 most popular stocks among hedge funds (click for Q2 rankings).

Hedge funds’ reputation as shrewd investors has been tarnished in the last decade as their hedged returns couldn’t keep up with the unhedged returns of the market indices. Hedge funds have more than $3.5 trillion in assets under management, so you can’t expect their entire portfolios to beat the market by large margins. Our research was able to identify in advance a select group of hedge fund holdings that outperformed the S&P 500 ETFs by more than 79 percentage points since March 2017 (see the details here). So you can still find a lot of gems by following hedge funds’ moves today.


Steven Cohen of Point72 Asset Management

With all of this in mind we’re going to take a gander at the latest hedge fund action surrounding Angi Inc. (NASDAQ:ANGI).

Do Hedge Funds Think ANGI Is A Good Stock To Buy Now?

At Q2’s end, a total of 26 of the hedge funds tracked by Insider Monkey held long positions in this stock, a change of -26% from the first quarter of 2020. By comparison, 48 hedge funds held shares or bullish call options in ANGI a year ago. With hedge funds’ positions undergoing their usual ebb and flow, there exists a select group of key hedge fund managers who were upping their holdings significantly (or already accumulated large positions).

The largest stake in Angi Inc. (NASDAQ:ANGI) was held by ShawSpring Partners, which reported holding $54.3 million worth of stock at the end of June. It was followed by Point72 Asset Management with a $46.5 million position. Other investors bullish on the company included Ulysses Management, 683 Capital Partners, and VGI Partners. In terms of the portfolio weights assigned to each position Provenire Capital allocated the biggest weight to Angi Inc. (NASDAQ:ANGI), around 5.36% of its 13F portfolio. ShawSpring Partners is also relatively very bullish on the stock, designating 5.16 percent of its 13F equity portfolio to ANGI.

Because Angi Inc. (NASDAQ:ANGI) has faced falling interest from the smart money, logic holds that there were a few hedgies who were dropping their entire stakes by the end of the second quarter. It’s worth mentioning that Sander Gerber’s Hudson Bay Capital Management cut the largest stake of all the hedgies followed by Insider Monkey, totaling close to $5.7 million in stock, and Richard SchimeláandáLawrence Sapanski’s Cinctive Capital Management was right behind this move, as the fund cut about $2.2 million worth. These moves are interesting, as total hedge fund interest fell by 9 funds by the end of the second quarter.

Let’s go over hedge fund activity in other stocks – not necessarily in the same industry as Angi Inc. (NASDAQ:ANGI) but similarly valued. These stocks are Stifel Financial Corp. (NYSE:SF), Marriott Vacations Worldwide Corporation (NYSE:VAC), Brixmor Property Group Inc (NYSE:BRX), Petco Health and Wellness Company, Inc. (NASDAQ:WOOF), Wyndham Hotels & Resorts, Inc. (NYSE:WH), First Industrial Realty Trust, Inc. (NYSE:FR), and InVitae Corporation (NYSE:NVTA). All of these stocks’ market caps match ANGI’s market cap.

Ticker No of HFs with positions Total Value of HF Positions (x1000) Change in HF Position
SF 24 416826 9
VAC 35 748154 11
BRX 21 179789 3
WOOF 27 321057 2
WH 24 801135 0
FR 22 282144 2
NVTA 31 2151154 -3
Average 26.3 700037 3.4

View table here if you experience formatting issues.

As you can see these stocks had an average of 26.3 hedge funds with bullish positions and the average amount invested in these stocks was $700 million. That figure was $314 million in ANGI’s case. Marriott Vacations Worldwide Corporation (NYSE:VAC) is the most popular stock in this table. On the other hand Brixmor Property Group Inc (NYSE:BRX) is the least popular one with only 21 bullish hedge fund positions. Angi Inc. (NASDAQ:ANGI) is not the least popular stock in this group but hedge fund interest is still below average. Our overall hedge fund sentiment score for ANGI is 30.1. 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. This is a slightly negative signal and we’d rather spend our time researching stocks that hedge funds are piling on. 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 24.9% in 2021 through October 15th and surpassed the market again by 4.5 percentage points. Unfortunately ANGI wasn’t nearly as popular as these 5 stocks (hedge fund sentiment was quite bearish); ANGI investors were disappointed as the stock returned -2.7% since the end of June (through 10/15) and underperformed the market. If you are interested in investing in large cap stocks with huge upside potential, you should check out the top 5 most popular stocks among hedge funds as most of these stocks already outperformed the market in 2021.

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