Is Cornerstone OnDemand, Inc. (CSOD) A Good Stock To Buy?

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As one would reasonably expect, specific money managers have jumped into Cornerstone OnDemand, Inc. (NASDAQ:CSOD) headfirst. Corvex Capital initiated the most outsized position in Cornerstone OnDemand. According to its latest 13F filing, the fund had $34.6 million invested in the company at the end of the quarter. Phill Gross and Robert Atchinson’s Adage Capital Management also made a $8.7 million investment in the stock during the quarter. The other funds with brand new CSOD positions are Dmitry Balyasny’s Balyasny Asset Management, Benjamin A. Smith’s Laurion Capital Management, and Sheetal Duggal’s Thrax Management.

Let’s now review hedge fund activity in other stocks similar to Cornerstone OnDemand, Inc. (NASDAQ:CSOD). These stocks are Performance Food Group Co (NYSE:PFGC), ENSCO PLC (NYSE:ESV), Prestige Brands Holdings, Inc. (NYSE:PBH), and InterXion Holding NV (NYSE:INXN). This group of stocks’ market values match CSOD’s market value.

Ticker No of HFs with positions Total Value of HF Positions (x1000) Change in HF Position
PFGC 14 30643 -1
ESV 33 555953 3
PBH 17 204942 -1
INXN 39 923290 4

As you can see these stocks had an average of 26 hedge funds with bullish positions and the average amount invested in these stocks was $429 million. That figure was $400 million in CSOD’s case. InterXion Holding NV (NYSE:INXN) is the most popular stock in this table. On the other hand Performance Food Group Co (NYSE:PFGC) is the least popular one with only 14 bullish hedge fund positions. Cornerstone OnDemand, Inc. (NASDAQ:CSOD) 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 INXN might be a better candidate to consider taking a long position in.

Disclosure: none.

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