A whopping number of 13F filings filed with U.S. Securities and Exchange Commission has been processed by Insider Monkey so that individual investors can look at the overall hedge fund sentiment towards the stocks included in their watchlists. These freshly-submitted public filings disclose money managers’ equity positions as of the end of the three-month period that ended September 30, so let’s proceed with the discussion of the hedge fund sentiment on Lindsay Corporation (NYSE:LNN).
Is LNN a good stock to buy now? Lindsay Corporation (NYSE:LNN) has experienced an increase in hedge fund interest recently. Lindsay Corporation (NYSE:LNN) was in 16 hedge funds’ portfolios at the end of the third quarter of 2020. The all time high for this statistic is 15. This means the bullish number of hedge fund positions in this stock currently sits at its all time high. There were 11 hedge funds in our database with LNN positions at the end of the second quarter. Our calculations also showed that LNN 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.
To the average investor there are a large number of tools market participants have at their disposal to size up their holdings. A couple of the best tools are hedge fund and insider trading activity. We have shown that, historically, those who follow the best picks of the elite hedge fund managers can outperform the S&P 500 by a healthy margin (see the details here).
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 15 best blue chip stocks 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 go over the new hedge fund action encompassing Lindsay Corporation (NYSE:LNN).
Do Hedge Funds Think LNN Is A Good Stock To Buy Now?
At the end of the third quarter, a total of 16 of the hedge funds tracked by Insider Monkey held long positions in this stock, a change of 45% from the previous quarter. On the other hand, there were a total of 8 hedge funds with a bullish position in LNN a year ago. So, let’s check out which hedge funds were among the top holders of the stock and which hedge funds were making big moves.
According to publicly available hedge fund and institutional investor holdings data compiled by Insider Monkey, Chuck Royce’s Royce & Associates has the largest position in Lindsay Corporation (NYSE:LNN), worth close to $75.8 million, amounting to 0.8% of its total 13F portfolio. The second largest stake is held by Ian Simm of Impax Asset Management, with a $59.9 million position; 0.5% of its 13F portfolio is allocated to the stock. Remaining professional money managers that are bullish comprise Mario Gabelli’s GAMCO Investors, D. E. Shaw’s D E Shaw and Ken Griffin’s Citadel Investment Group. In terms of the portfolio weights assigned to each position Royce & Associates allocated the biggest weight to Lindsay Corporation (NYSE:LNN), around 0.82% of its 13F portfolio. SG Capital Management is also relatively very bullish on the stock, dishing out 0.6 percent of its 13F equity portfolio to LNN.
As one would reasonably expect, key money managers were breaking ground themselves. SG Capital Management, managed by Ken Grossman and Glen Schneider, created the largest position in Lindsay Corporation (NYSE:LNN). SG Capital Management had $2.1 million invested in the company at the end of the quarter. Peter Rathjens, Bruce Clarke and John Campbell’s Arrowstreet Capital also made a $1.1 million investment in the stock during the quarter. The following funds were also among the new LNN investors: Paul Marshall and Ian Wace’s Marshall Wace LLP, Cliff Asness’s AQR Capital Management, and Greg Eisner’s Engineers Gate Manager.
Let’s also examine hedge fund activity in other stocks – not necessarily in the same industry as Lindsay Corporation (NYSE:LNN) but similarly valued. We will take a look at Arcturus Therapeutics Holdings Inc. (NASDAQ:ARCT), Ontrak, Inc. (NASDAQ:OTRK), Safety Insurance Group, Inc. (NASDAQ:SAFT), Cerus Corporation (NASDAQ:CERS), Kiniksa Pharmaceuticals, Ltd. (NASDAQ:KNSA), BP Midstream Partners LP (NYSE:BPMP), and TriMas Corp (NASDAQ:TRS). This group of stocks’ market caps match LNN’s market cap.
|Ticker||No of HFs with positions||Total Value of HF Positions (x1000)||Change in HF Position|
View table here if you experience formatting issues.
As you can see these stocks had an average of 14.3 hedge funds with bullish positions and the average amount invested in these stocks was $90 million. That figure was $161 million in LNN’s case. Arcturus Therapeutics Holdings Inc. (NASDAQ:ARCT) is the most popular stock in this table. On the other hand BP Midstream Partners LP (NYSE:BPMP) is the least popular one with only 5 bullish hedge fund positions. Lindsay Corporation (NYSE:LNN) is not the most popular stock in this group but hedge fund interest is still above average. Our overall hedge fund sentiment score for LNN is 76.7. 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 30.7% in 2020 through December 14th and still beat the market by 15.8 percentage points. Hedge funds were also right about betting on LNN as the stock returned 24.5% since the end of Q3 (through 12/14) and outperformed the market. Hedge funds were rewarded for their relative bullishness.
Disclosure: None. This article was originally published at Insider Monkey.