Is GEE Group, Inc. (JOB) A Good Stock To Buy?

The Insider Monkey team has completed processing the quarterly 13F filings for the September quarter submitted by the hedge funds and other money managers included in our extensive database. Most hedge fund investors experienced strong gains on the back of a strong market performance, which certainly propelled them to adjust their equity holdings so as to maintain the desired risk profile. As a result, the relevancy of these public filings and their content is indisputable, as they may reveal numerous high-potential stocks. The following article will discuss the smart money sentiment towards GEE Group, Inc. (NYSE:JOB).

GEE Group, Inc. (NYSE:JOB) has seen an increase in enthusiasm from smart money lately. GEE Group, Inc. (NYSE:JOB) was in 3 hedge funds’ portfolios at the end of September. The all time high for this statistics is 2. This means the bullish number of hedge fund positions in this stock currently sits at its all time high. There were 2 hedge funds in our database with JOB holdings at the end of June. Our calculations also showed that JOB isn’t among the 30 most popular stocks among hedge funds (click for Q3 rankings and see the video for a quick look at the top 5 stocks).

Video: Watch our video about the top 5 most popular hedge fund stocks.

Why do we pay any attention at all to hedge fund sentiment? Our research has shown that a select group of hedge fund holdings outperformed the S&P 500 ETFs by 66 percentage points since March 2017 (see the details here). We were also able to identify in advance a select group of hedge fund holdings that’ll significantly underperform the market. We have been tracking and sharing the list of these stocks since February 2017 and they lost 13% through November 17th. That’s why we believe hedge fund sentiment is an extremely useful indicator that investors should pay attention to.


Ken Griffin of Citadel Investment Group

At Insider Monkey we scour multiple sources to uncover the next great investment idea. For example, Federal Reserve has been creating trillions of dollars electronically to keep the interest rates near zero. We believe this will lead to inflation and boost real estate prices. So, we recommended this real estate stock to our monthly premium newsletter subscribers. We go through lists like the 10 most profitable companies in the world to pick the best large-cap stocks to buy. Even though we recommend positions in only a tiny fraction of the companies we analyze, we check out as many stocks as we can. We read hedge fund investor letters and listen to stock pitches at hedge fund conferences. You can subscribe to our free daily newsletter on our website.With all of this in mind let’s check out the latest hedge fund action encompassing GEE Group, Inc. (NYSE:JOB).

What does smart money think about GEE Group, Inc. (NYSE:JOB)?

Heading into the fourth quarter of 2020, a total of 3 of the hedge funds tracked by Insider Monkey were bullish on this stock, a change of 50% from the previous quarter. By comparison, 0 hedge funds held shares or bullish call options in JOB a year ago. So, let’s find out which hedge funds were among the top holders of the stock and which hedge funds were making big moves.

The largest stake in GEE Group, Inc. (NYSE:JOB) was held by Renaissance Technologies, which reported holding $0.3 million worth of stock at the end of September. It was followed by Citadel Investment Group with a $0 million position. The only other hedge fund that is bullish on the company was Two Sigma Advisors.

As one would reasonably expect, specific money managers were leading the bulls’ herd. Two Sigma Advisors, managed by John Overdeck and David Siegel, initiated the biggest position in GEE Group, Inc. (NYSE:JOB). Two Sigma Advisors had $0 million invested in the company at the end of the quarter.

Let’s now review hedge fund activity in other stocks similar to GEE Group, Inc. (NYSE:JOB). These stocks are Helius Medical Technologies, Inc. (NASDAQ:HSDT), Hancock Jaffe Laboratories, Inc. (NASDAQ:HJLI), Sphere 3D Corp. (NASDAQ:ANY), General Moly, Inc. (NYSE:GMO), Kubient, Inc. (NASDAQ:KBNT), Pyxis Tankers Inc. (NASDAQ:PXS), and Asia Pacific Wire & Cable Corporation Limited (NASDAQ:APWC). This group of stocks’ market values are similar to JOB’s market value.

Ticker No of HFs with positions Total Value of HF Positions (x1000) Change in HF Position
HSDT 2 419 1
HJLI 1 56 0
ANY 2 409 0
GMO 1 3 -1
KBNT 2 411 2
PXS 1 56 0
APWC 2 59 1
Average 1.6 202 0.4

View table here if you experience formatting issues.

As you can see these stocks had an average of 1.6 hedge funds with bullish positions and the average amount invested in these stocks was $0 million. That figure was $0 million in JOB’s case. Helius Medical Technologies, Inc. (NASDAQ:HSDT) is the most popular stock in this table. On the other hand Hancock Jaffe Laboratories, Inc. (NASDAQ:HJLI) is the least popular one with only 1 bullish hedge fund positions. Compared to these stocks GEE Group, Inc. (NYSE:JOB) is more popular among hedge funds. Our overall hedge fund sentiment score for JOB is 86. 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 20 most popular stocks among hedge funds returned 41.3% in 2019 and outperformed the S&P 500 ETF (SPY) by 10 percentage points. These stocks gained 28.1% in 2020 through November 23rd and still beat the market by 15.4 percentage points. Unfortunately JOB wasn’t nearly as popular as these 20 stocks and hedge funds that were betting on JOB were disappointed as the stock returned -2% since the end of the third quarter (through 11/23) and underperformed the market. If you are interested in investing in large cap stocks with huge upside potential, you should check out the top 20 most popular stocks among hedge funds as most of these stocks already outperformed the market in 2020.

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