Dear Valued Visitor,

We have noticed that you are using an ad blocker software.

Although advertisements on the web pages may degrade your experience, our business certainly depends on them and we can only keep providing you high-quality research based articles as long as we can display ads on our pages.

To view this article, you can disable your ad blocker and refresh this page or simply login.

We only allow registered users to use ad blockers. You can sign up for free by clicking here or you can login if you are already a member.

Is Citrix Systems, Inc. (CTXS) A Good Stock To Buy?

Investing in hedge funds can bring large profits, but it’s not for everybody, since hedge funds are available only for high-net-worth individuals. They generate significant returns for investors to justify their large fees and they allocate a lot of time and employ a complex analysis to determine the best stocks to invest in. A particularly interesting group of stocks that hedge funds like is the small-caps. The huge amount of capital does not allow hedge funds to invest a lot in small-caps, but our research showed that their most popular small-cap ideas are less efficiently priced and generate stronger returns than their large- and mega-cap picks and the broader market. That is why we follow the hedge fund activity in the small-cap space.

Citrix Systems, Inc. (NASDAQ:CTXS) investors should pay attention to a decrease in hedge fund sentiment recently. At the end of this article we will also compare CTXS to other stocks, including Realty Income Corp (NYSE:O), SanDisk Corporation (NASDAQ:SNDK), and Coca-Cola Enterprises Inc (NYSE:CCE) to get a better sense of its popularity.

Follow Citrix Systems Inc (NASDAQ:CTXS)
Trade (NASDAQ:CTXS) Now!

In the financial world there are several signals shareholders put to use to grade publicly traded companies. Some of the most under-the-radar signals are hedge fund and insider trading signals. We have shown that, historically, those who follow the top picks of the elite investment managers can outclass their index-focused peers by a significant margin (see the details here).

Keeping this in mind, let’s take a gander at the key action encompassing Citrix Systems, Inc. (NASDAQ:CTXS).

How are hedge funds trading Citrix Systems, Inc. (NASDAQ:CTXS)?

At Q3’s end, a total of 38 of the hedge funds tracked by Insider Monkey held long positions in this stock, inching down by 3% from the second quarter. With the smart money’s sentiment swirling, there exists a few notable hedge fund managers who were upping their stakes considerably (or already accumulated large positions).

According to publicly available hedge fund and institutional investor holdings data compiled by Insider Monkey, Elliott Management, managed by Paul Singer, holds the most valuable position in Citrix Systems, Inc. (NASDAQ:CTXS), worth an estimated $406.7 million and comprising 7.8% of its 13F portfolio. Sitting at the No. 2 spot is Bain Capital of Brookside Capital, with a $209 million position; the fund has 6.2% of its 13F portfolio invested in the stock. Other hedge funds and institutional investors that are bullish encompass Peter Adam Hochfelder’s Brahman Capital, D. E. Shaw’s D E Shaw and Cliff Asness’s AQR Capital Management.

Judging by the fact that Citrix Systems, Inc. (NASDAQ:CTXS) has witnessed falling interest from hedge fund managers, logic holds that there exists a select few money managers who were dropping their full holdings heading into Q4. Intriguingly, Jim Simons’s Renaissance Technologies said goodbye to the biggest stake of all the hedgies followed by Insider Monkey, worth close to $17.9 million in stock. Millennium Management Subsidiary’s fund, Blue Arrow Capital Management, also said goodbye to its investment in the company, about $11.9 million worth of CTXS shares. These moves are important to note, as total hedge fund interest dropped by 1 fund heading into Q4.

Let’s go over hedge fund activity in other stocks similar to Citrix Systems, Inc. (NASDAQ:CTXS). We will take a look at Realty Income Corp (NYSE:O), SanDisk Corporation (NASDAQ:SNDK), Coca-Cola Enterprises Inc (NYSE:CCE), and Henry Schein, Inc. (NASDAQ:HSIC). All of these stocks’ market caps match CTXS’s market cap.

Ticker No of HFs with positions Total Value of HF Positions (x1000) Change in HF Position
O 13 93579 1
SNDK 38 1024414 -12
CCE 28 847569 -4
HSIC 22 388271 5

As you can see these stocks had an average of 25 hedge funds with bullish positions and the average amount invested in these stocks was $588 million. That figure was $1.44 billion in CTXS’s case. SanDisk Corporation (NASDAQ:SNDK) is the most popular stock in this table. On the other hand Realty Income Corp (NYSE:O) is the least popular one with only 13 bullish hedge fund positions. Both Citrix Systems, Inc. (NASDAQ:CTXS) and SanDisk Corporation (NASDAQ:SNDK) are the leaders of this group and have also attracted significant investments from the hedge fund community, north of $1 billion. We think an in-depth analysis into both stocks is necessary before adding them to your portfolio.

DOWNLOAD FREE REPORT: Warren Buffett's Best Stock Picks

Let Warren Buffett, George Soros, Steve Cohen, and Daniel Loeb WORK FOR YOU.

If you want to beat the low cost index funds by 19 percentage points per year, look no further than our monthly newsletter.In this free report you can find an in-depth analysis of the performance of Warren Buffett's entire historical stock picks. We uncovered Warren Buffett's Best Stock Picks and a way to for Buffett to improve his returns by more than 4 percentage points per year.

Bonus Biotech Stock Pick: You can also find a detailed bonus biotech stock pick that we expect to return more than 50% within 12 months.
Subscribe me to Insider Monkey's Free Daily Newsletter
This is a FREE report from Insider Monkey. Credit Card is NOT required.
Loading...