Is TTEC A Good Stock To Buy Now?

The 800+ hedge funds and famous 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 portfolios. Our extensive review of these public filings is finally over, so this article is set to reveal the smart money sentiment towards TTEC Holdings, Inc. (NASDAQ:TTEC).

Is TTEC a good stock to buy now? TTEC Holdings, Inc. (NASDAQ:TTEC) has seen an increase in hedge fund interest recently. TTEC Holdings, Inc. (NASDAQ:TTEC) was in 14 hedge funds’ portfolios at the end of September. The all time high for this statistic is 26. There were 12 hedge funds in our database with TTEC holdings at the end of June. Our calculations also showed that TTEC 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.

At the moment there are numerous gauges investors employ to appraise their stock investments. Some of the most underrated gauges are hedge fund and insider trading sentiment. We have shown that, historically, those who follow the best picks of the best money managers can outclass the S&P 500 by a solid amount (see the details here).

David Harding

David Harding of Winton Capital Management

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. Now we’re going to take a glance at the key hedge fund action regarding TTEC Holdings, Inc. (NASDAQ:TTEC).

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

At third quarter’s end, a total of 14 of the hedge funds tracked by Insider Monkey held long positions in this stock, a change of 17% from the previous quarter. By comparison, 14 hedge funds held shares or bullish call options in TTEC a year ago. With the smart money’s capital changing hands, there exists a few key hedge fund managers who were boosting their holdings substantially (or already accumulated large positions).

The largest stake in TTEC Holdings, Inc. (NASDAQ:TTEC) was held by Renaissance Technologies, which reported holding $19.4 million worth of stock at the end of September. It was followed by Arrowstreet Capital with a $8.3 million position. Other investors bullish on the company included Running Oak Capital, Millennium Management, and AQR Capital Management. In terms of the portfolio weights assigned to each position Running Oak Capital allocated the biggest weight to TTEC Holdings, Inc. (NASDAQ:TTEC), around 1.83% of its 13F portfolio. Quantinno Capital is also relatively very bullish on the stock, designating 0.4 percent of its 13F equity portfolio to TTEC.

As aggregate interest increased, key money managers were breaking ground themselves. Millennium Management, managed by Israel Englander, assembled the biggest position in TTEC Holdings, Inc. (NASDAQ:TTEC). Millennium Management had $3.3 million invested in the company at the end of the quarter. Hoon Kim’s Quantinno Capital also initiated a $0.6 million position during the quarter. The following funds were also among the new TTEC investors: Michael Gelband’s ExodusPoint Capital, David Harding’s Winton Capital Management, and Donald Sussman’s Paloma Partners.

Let’s check out hedge fund activity in other stocks similar to TTEC Holdings, Inc. (NASDAQ:TTEC). We will take a look at Insperity Inc (NYSE:NSP), United States Cellular Corporation (NYSE:USM), SINA Corp (NASDAQ:SINA), Afya Limited (NASDAQ:AFYA), Progyny, Inc. (NASDAQ:PGNY), Chart Industries, Inc. (NASDAQ:GTLS), and Seres Therapeutics Inc (NASDAQ:MCRB). All of these stocks’ market caps resemble TTEC’s market cap.

Ticker No of HFs with positions Total Value of HF Positions (x1000) Change in HF Position
NSP 24 224616 -5
USM 13 92934 -3
SINA 22 176746 6
AFYA 6 52155 0
PGNY 20 116628 1
GTLS 20 223347 -2
MCRB 12 190096 7
Average 16.7 153789 0.6

View table here if you experience formatting issues.

As you can see these stocks had an average of 16.7 hedge funds with bullish positions and the average amount invested in these stocks was $154 million. That figure was $42 million in TTEC’s case. Insperity Inc (NYSE:NSP) is the most popular stock in this table. On the other hand Afya Limited (NASDAQ:AFYA) is the least popular one with only 6 bullish hedge fund positions. TTEC Holdings, Inc. (NASDAQ:TTEC) is not the least popular stock in this group but hedge fund interest is still below average. Our overall hedge fund sentiment score for TTEC is 45.4. 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. A small number of hedge funds were also right about betting on TTEC as the stock returned 33.9% since the end of the third quarter (through 12/8) and outperformed the market by an even larger margin.

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