Is EVBG Stock A Buy or Sell?

We at Insider Monkey have gone over 887 13F filings that hedge funds and prominent investors are required to file by the SEC The 13F filings show the funds’ and investors’ portfolio positions as of December 31st. In this article, we look at what those funds think of Everbridge, Inc. (NASDAQ:EVBG) based on that data.

Is EVBG stock a buy?Everbridge, Inc. (NASDAQ:EVBG) investors should pay attention to an increase in activity from the world’s largest hedge funds of late. Everbridge, Inc. (NASDAQ:EVBG) was in 36 hedge funds’ portfolios at the end of the fourth quarter of 2020. The all time high for this statistic is 43. There were 30 hedge funds in our database with EVBG holdings at the end of September. Our calculations also showed that EVBG isn’t among the 30 most popular stocks among hedge funds (click for Q4 rankings).

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

At the end of December, a total of 36 of the hedge funds tracked by Insider Monkey were long this stock, a change of 20% from the previous quarter. The graph below displays the number of hedge funds with bullish position in EVBG over the last 22 quarters. So, let’s review which hedge funds were among the top holders of the stock and which hedge funds were making big moves.

The largest stake in Everbridge, Inc. (NASDAQ:EVBG) was held by Select Equity Group, which reported holding $615.6 million worth of stock at the end of December. It was followed by Sylebra Capital Management with a $263.4 million position. Other investors bullish on the company included Polar Capital, Alta Park Capital, and Motley Fool Asset Management. In terms of the portfolio weights assigned to each position Sylebra Capital Management allocated the biggest weight to Everbridge, Inc. (NASDAQ:EVBG), around 6.71% of its 13F portfolio. Cota Capital is also relatively very bullish on the stock, dishing out 6.27 percent of its 13F equity portfolio to EVBG.

As one would reasonably expect, some big names have been driving this bullishness. Black-and-White Capital, managed by Seth Wunder, initiated the biggest position in Everbridge, Inc. (NASDAQ:EVBG). Black-and-White Capital had $19.3 million invested in the company at the end of the quarter. Mark Coe’s Intrinsic Edge Capital also made a $12.9 million investment in the stock during the quarter. The other funds with brand new EVBG positions are Joseph Samuels’s Islet Management, Michel Massoud’s Melqart Asset Management, and Nicolas Boullet’s First Growth Capital Management.

Let’s now review hedge fund activity in other stocks – not necessarily in the same industry as Everbridge, Inc. (NASDAQ:EVBG) but similarly valued. These stocks are Stifel Financial Corp. (NYSE:SF), Varonis Systems Inc (NASDAQ:VRNS), Manpowergroup Inc (NYSE:MAN), Leslie’s, Inc. (NASDAQ:LESL), Landstar System, Inc. (NASDAQ:LSTR), Certara, Inc. (NASDAQ:CERT), and Thor Industries, Inc. (NYSE:THO). All of these stocks’ market caps are similar to EVBG’s market cap.

View table here if you experience formatting issues.

As you can see these stocks had an average of 23.1 hedge funds with bullish positions and the average amount invested in these stocks was $286 million. That figure was $1247 million in EVBG’s case. Manpowergroup Inc (NYSE:MAN) is the most popular stock in this table. On the other hand Stifel Financial Corp. (NYSE:SF) is the least popular one with only 18 bullish hedge fund positions. Compared to these stocks Everbridge, Inc. (NASDAQ:EVBG) is more popular among hedge funds. Our overall hedge fund sentiment score for EVBG is 85.1. 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. Our calculations showed that top 30 most popular stocks among hedge funds returned 81.2% in 2019 and 2020, and outperformed the S&P 500 ETF (SPY) by 26 percentage points. These stocks gained 7.9% in 2021 through April 1st and still beat the market by 0.4 percentage points. Unfortunately EVBG wasn’t nearly as popular as these 30 stocks and hedge funds that were betting on EVBG were disappointed as the stock returned -15.8% since the end of the fourth quarter (through 4/1) and underperformed the market. If you are interested in investing in large cap stocks with huge upside potential, you should check out the top 30 most popular stocks among hedge funds as most of these stocks already outperformed the market since 2019.

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