We can judge whether Everi Holdings Inc (NYSE:EVRI) is a good investment right now by following the lead of some of the best investors in the world and piggybacking their ideas. There’s no better way to get these firms’ immense resources and analytical capabilities working for us than to follow their lead into their best ideas. While not all of these picks will be winners, research shows that these picks historically outperformed the market when we factor in known risk factors.
Everi Holdings Inc (NYSE:EVRI) was in 16 hedge funds’ portfolios at the end of September. Everi Holdings Inc (NYSE:EVRI) has experienced a decrease in hedge fund sentiment recently. There were 22 hedge funds in our database with Everi Holdings Inc (NYSE:EVRI) holdings at the end of the previous quarter. At the end of this article, we will also compare Everi Holdings Inc (NYSE:EVRI) to other stocks including American Vanguard Corp. (NYSE:AVD), Enova International Inc (NYSE:ENVA), and First Bancorp (NASDAQ:FBNC) to get a better sense of its popularity.
Follow Everi Holdings Inc. (NYSE:EVRI)
Follow Everi Holdings Inc. (NYSE:EVRI)
In the financial world, there are a multitude of formulas market participants have at their disposal to grade their holdings. Some of the most underrated formulas are hedge fund and insider trading indicators. Our researchers have shown that, historically, those who follow the top picks of the top hedge fund managers can outpace the broader indices by a significant margin (see the details here).
With all of this in mind, let’s take a gander at the recent action encompassing Everi Holdings Inc (NYSE:EVRI).
How have hedgies been trading Everi Holdings Inc (NYSE:EVRI)?
At the end of Q3, a total of 16 of the hedge funds tracked by Insider Monkey were long this stock, a drop of 27% from one quarter earlier. With hedge funds’ positions undergoing their usual ebb and flow, there exists an “upper tier” of key hedge fund managers who were boosting their holdings considerably (or already accumulated large positions).
Of the funds tracked by Insider Monkey, David Steinberg’s MAST Capital has the most valuable position in Everi Holdings Inc (NYSE:EVRI), worth close to $43.2 million, amounting to 62.4% of its total 13F portfolio. The second most bullish fund manager is William C. Martin of Raging Capital Management, with a $13.3 million position; the fund has 1.7% of its 13F portfolio invested in the stock. Other professional money managers that are bullish encompass D E Shaw, Gregg J. Powers’s Private Capital Management, and Andy Redleaf’s Whitebox Advisors.
We view hedge fund activity in the stock unfavorable, but in this case there was only a single hedge fund selling its entire position: 999. One hedge fund selling its entire position doesn’t always imply a bearish intent. Theoretically a hedge fund may decide to sell a promising position in order to invest the proceeds in a more promising idea. However, we don’t think this is the case here because only one of the 700+ hedge funds tracked by Insider Monkey identified as a viable investment and initiated a position in the stock (that fund was MAST Capital).
Let’s now take a look at hedge fund activity in other stocks – not necessarily in the same industry as Everi Holdings Inc (NYSE:EVRI) but similarly valued. We will take a look at American Vanguard Corp. (NYSE:AVD), Enova International Inc (NYSE:ENVA), First Bancorp (NASDAQ:FBNC), and InnerWorkings, Inc. (NASDAQ:INWK). This group of stocks’ market caps matches Everi Holdings Inc (NYSE:EVRI)’s market cap.
| Ticker | No of HFs with positions | Total Value of HF Positions (x1000) | Change in HF Position |
|---|---|---|---|
| AVD | 6 | 19176 | 0 |
| ENVA | 14 | 43395 | -2 |
| FBNC | 9 | 39354 | 1 |
| INWK | 11 | 88455 | -1 |
As you can see, these stocks had an average of 10 hedge funds with bullish positions and the average amount invested in these stocks was $48 million. That figure was $98 million in Everi Holdings Inc (NYSE:EVRI)’s case. Enova International Inc (NYSE:ENVA) is the most popular stock in this table. On the other hand, American Vanguard Corp. (NYSE:AVD) is the least popular one with only 6 bullish hedge fund positions. Compared to these stocks, Everi Holdings Inc (NYSE:EVRI) is more popular among hedge funds. Considering that hedge funds are fond of this stock in relation to its market cap peers, it may be a good idea to analyze it in detail and potentially include it in your portfolio.