Is Penumbra Inc (PEN) A Good Stock To Buy?

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The 700+ hedge funds and money managers tracked by Insider Monkey have already compiled and submitted their 13F filings for the third quarter, which unveil their equity positions as of September 30. We went through these filings, fixed typos and other more significant errors and identified the changes in hedge fund positions. Our extensive review of these public filings is finally over, so this article is set to reveal the smart money sentiment towards Penumbra Inc (NYSE:PEN) .

Is Penumbra Inc (NYSE:PEN) the right investment to pursue these days? Prominent investors are buying. The number of bullish hedge fund investments went up by 4 lately. There were 13 hedge funds in our database with PEN holdings at the end of the previous quarter. The level and the change in hedge fund popularity aren’t the only variables you need to analyze to decipher hedge funds’ perspectives. A stock may witness a boost in popularity but it may still be less popular than similarly priced stocks. That’s why at the end of this article we will examine companies such as Office Depot Inc (NYSE:ODP), Esterline Technologies Corporation (NYSE:ESL), and Mueller Industries, Inc. (NYSE:MLI) to gather more data points.

Follow Penumbra Inc (NYSE:PEN)

At Insider Monkey, we’ve developed an investment strategy that has delivered market-beating returns over the past 12 months. Our strategy identifies the 100 best-performing funds of the previous quarter from among the collection of 700+ successful funds that we track in our database, which we accomplish using our returns methodology. We then study the portfolios of those 100 funds using the latest 13F data to uncover the 30 most popular mid-cap stocks (market caps of between $1 billion and $10 billion) among them to hold until the next filing period. This strategy delivered 18% gains over the past 12 months, more than doubling the 8% returns enjoyed by the S&P 500 ETFs.

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Now, we’re going to take a look at the new action encompassing Penumbra Inc (NYSE:PEN).

Hedge fund activity in Penumbra Inc (NYSE:PEN)

Heading into the fourth quarter of 2016, a total of 17 of the hedge funds tracked by Insider Monkey were long this stock, a change of 31% from the second quarter of 2016. The graph below displays the number of hedge funds with bullish position in PEN over the last 5 quarters. So, let’s review which hedge funds were among the top holders of the stock and which hedge funds were making big moves.


When looking at the institutional investors followed by Insider Monkey, Jeremy Green’s Redmile Group has the largest position in Penumbra Inc (NYSE:PEN), worth close to $51.1 million, corresponding to 4.1% of its total 13F portfolio. The second largest stake is held by Kris Jenner, Gordon Bussard, Graham McPhail of Rock Springs Capital Management, with a $20.3 million position; 1.3% of its 13F portfolio is allocated to the stock. Other professional money managers that are bullish consist of Christopher James’s Partner Fund Management, Jim Simons’s Renaissance Technologies and Israel Englander’s Millennium Management. We should note that none of these hedge funds are among our list of the 100 best performing hedge funds which is based on the performance of their 13F long positions in non-microcap stocks.

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