Is Perficient, Inc. (PRFT) A Good Stock To Buy?

We at Insider Monkey have gone over 700 13F filings that hedge funds and prominent investors are required to file by the SEC The 13F filings show the funds’ and investors’ portfolio positions as of September 30th. In this article, we look at what those funds think of Perficient, Inc. (NASDAQ:PRFT) based on that data.

Perficient, Inc. (NASDAQ:PRFT) investors should pay attention to an increase in hedge fund sentiment in recent months. Our calculations also showed that prft isn’t among the 30 most popular stocks among hedge funds.

Why do we pay any attention at all to hedge fund sentiment? Our research has shown that hedge funds’ large-cap stock picks indeed failed to beat the market between 1999 and 2016. However, we were able to identify in advance a select group of hedge fund holdings that outperformed the market by 18 percentage points since May 2014 through December 3, 2018 (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 24% through December 3, 2018. That’s why we believe hedge fund sentiment is an extremely useful indicator that investors should pay attention to.

John Overdeck of Two Sigma

Let’s review the recent hedge fund action encompassing Perficient, Inc. (NASDAQ:PRFT).

How have hedgies been trading Perficient, Inc. (NASDAQ:PRFT)?

At Q3’s end, a total of 19 of the hedge funds tracked by Insider Monkey were long this stock, a change of 90% from the previous quarter. Below, you can check out the change in hedge fund sentiment towards PRFT over the last 13 quarters. So, let’s examine which hedge funds were among the top holders of the stock and which hedge funds were making big moves.

No of Hedge Funds with PRFT Positions

Among these funds, Citadel Investment Group held the most valuable stake in Perficient, Inc. (NASDAQ:PRFT), which was worth $5.2 million at the end of the third quarter. On the second spot was GLG Partners which amassed $3.7 million worth of shares. Moreover, AQR Capital Management, Two Sigma Advisors, and Highbridge Capital Management were also bullish on Perficient, Inc. (NASDAQ:PRFT), allocating a large percentage of their portfolios to this stock.

As aggregate interest increased, some big names were breaking ground themselves. Highbridge Capital Management, managed by Glenn Russell Dubin, initiated the most valuable position in Perficient, Inc. (NASDAQ:PRFT). Highbridge Capital Management had $3 million invested in the company at the end of the quarter. Jim Simons’s Renaissance Technologies also made a $1.9 million investment in the stock during the quarter. The other funds with brand new PRFT positions are Nick Niell’s Arrowgrass Capital Partners, Daniel S. Och’s OZ Management, and Andrew Weiss’s Weiss Asset Management.

Let’s also examine hedge fund activity in other stocks – not necessarily in the same industry as Perficient, Inc. (NASDAQ:PRFT) but similarly valued. These stocks are XO Group Inc (NYSE:XOXO), Goldman Sachs BDC, Inc. (NYSE:GSBD), Amphastar Pharmaceuticals Inc (NASDAQ:AMPH), and Forestar Group Inc. (NYSE:FOR). This group of stocks’ market values are similar to PRFT’s market value.

Ticker No of HFs with positions Total Value of HF Positions (x1000) Change in HF Position
XOXO 17 141303 5
GSBD 4 5145 0
AMPH 5 6193 -2
FOR 5 98922 -1
Average 7.75 62891 0.5

View table here if you experience formatting issues.

As you can see these stocks had an average of 7.75 hedge funds with bullish positions and the average amount invested in these stocks was $63 million. That figure was $33 million in PRFT’s case. XO Group Inc (NYSE:XOXO) is the most popular stock in this table. On the other hand Goldman Sachs BDC, Inc. (NYSE:GSBD) is the least popular one with only 4 bullish hedge fund positions. Compared to these stocks Perficient, Inc. (NASDAQ:PRFT) 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.

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