Is MSON A Good Stock To Buy Now?

The latest 13F reporting period has come and gone, and Insider Monkey is again at the forefront when it comes to making use of this gold mine of data. We have processed the filings of the more than 817 world-class investment firms that we track and now have access to the collective wisdom contained in these filings, which are based on their September 30 holdings, data that is available nowhere else. Should you consider Misonix, Inc. (NASDAQ:MSON) for your portfolio? We’ll look to this invaluable collective wisdom for the answer.

Is MSON a good stock to buy now? Misonix, Inc. (NASDAQ:MSON) investors should pay attention to an increase in enthusiasm from smart money of late. Misonix, Inc. (NASDAQ:MSON) was in 10 hedge funds’ portfolios at the end of the third quarter of 2020. The all time high for this statistics is 9. This means the bullish number of hedge fund positions in this stock currently sits at its all time high. There were 7 hedge funds in our database with MSON positions at the end of the second quarter. Our calculations also showed that MSON 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 tons of indicators stock traders employ to value their holdings. Two of the most under-the-radar indicators are hedge fund and insider trading signals. Our researchers have shown that, historically, those who follow the best picks of the best money managers can outperform the broader indices by a solid margin (see the details here).

Chuck Royce

Chuck Royce of Royce & Associates

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. Keeping this in mind we’re going to analyze the latest hedge fund action surrounding Misonix, Inc. (NASDAQ:MSON).

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

At the end of the third quarter, a total of 10 of the hedge funds tracked by Insider Monkey were bullish on this stock, a change of 43% from the second quarter of 2020. On the other hand, there were a total of 3 hedge funds with a bullish position in MSON a year ago. With the smart money’s capital changing hands, there exists a few notable hedge fund managers who were upping their stakes significantly (or already accumulated large positions).

Is MSON A Good Stock To Buy?

Among these funds, Pura Vida Investments held the most valuable stake in Misonix, Inc. (NASDAQ:MSON), which was worth $5.8 million at the end of the third quarter. On the second spot was Juniper Investment Company which amassed $5.5 million worth of shares. Tamarack Capital Management, Royce & Associates, and Soleus Capital were also very fond of the stock, becoming one of the largest hedge fund holders of the company. In terms of the portfolio weights assigned to each position Juniper Investment Company allocated the biggest weight to Misonix, Inc. (NASDAQ:MSON), around 5.79% of its 13F portfolio. Soleus Capital is also relatively very bullish on the stock, dishing out 1.56 percent of its 13F equity portfolio to MSON.

As aggregate interest increased, key hedge funds were leading the bulls’ herd. Granite Point Capital, managed by Warren Lammert, established the biggest position in Misonix, Inc. (NASDAQ:MSON). Granite Point Capital had $1 million invested in the company at the end of the quarter. Ken Griffin’s Citadel Investment Group also initiated a $0.3 million position during the quarter. The only other fund with a brand new MSON position is Israel Englander’s Millennium Management.

Let’s go over hedge fund activity in other stocks similar to Misonix, Inc. (NASDAQ:MSON). These stocks are BlueLinx Holdings Inc. (NYSE:BXC), Nesco Holdings, Inc. (NYSE:NSCO), scPharmaceuticals Inc. (NASDAQ:SCPH), PCSB Financial Corporation (NASDAQ:PCSB), Rayonier Advanced Materials Inc (NYSE:RYAM), Park-Ohio Holdings Corp. (NASDAQ:PKOH), and Solar Senior Capital Ltd (NASDAQ:SUNS). This group of stocks’ market values are similar to MSON’s market value.

Ticker No of HFs with positions Total Value of HF Positions (x1000) Change in HF Position
BXC 13 64708 3
NSCO 11 11984 1
SCPH 12 85081 1
PCSB 11 17872 2
RYAM 10 19326 0
PKOH 6 16550 -2
SUNS 2 1073 0
Average 9.3 30942 0.7

View table here if you experience formatting issues.

As you can see these stocks had an average of 9.3 hedge funds with bullish positions and the average amount invested in these stocks was $31 million. That figure was $24 million in MSON’s case. BlueLinx Holdings Inc. (NYSE:BXC) is the most popular stock in this table. On the other hand Solar Senior Capital Ltd (NASDAQ:SUNS) is the least popular one with only 2 bullish hedge fund positions. Misonix, Inc. (NASDAQ:MSON) is not the most popular stock in this group but hedge fund interest is still above average. Our overall hedge fund sentiment score for MSON is 74.4. 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 32.9% in 2020 through December 8th and still beat the market by 16.2 percentage points. Hedge funds were also right about betting on MSON as the stock returned 15.8% since the end of Q3 (through 12/8) and outperformed the market. Hedge funds were rewarded for their relative bullishness.

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