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Nimble Storage Inc (NMBL) Having a Big Day After the Release of Strong Financial Results

Nimble Storage Inc (NYSE:NMBL) shares are over 23% higher today after the company reported a first quarter loss of $0.24 per share on revenue of $86.4 million, beating estimates by $0.02 per share and $1.82 million respectively. Revenue grew by 21.2% year-over-year, led by the company’s support and service division, which saw sales jump by a robust 62.5% year-over-year. Nimble’s customer base rose by 48% year-over-year. Guidance was strong, with management predicting second quarter sales of $93 million-to-$96 million versus estimates of $92.8 million, as well as a second quarter loss of $0.19-to-$0.21 per share, which was in-line with estimates.

Heading into the second quarter of 2016, a total of 15 of the hedge funds tracked by Insider Monkey held long positions in this stock, a 29% drop from one quarter earlier. However, while fewer hedge funds held positions, their share ownership increased. Those 15 hedge funds held $114.22 million in shares, accounting for 18% of the company’s float. That figure was up from $93.52 million in holdings on December 31. The increase also came despite the stock declining rather heavily during the quarter, by about 16%, so there were some bullish hedge fund managers buying shares on the first quarter dip.

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When looking at the institutional investors followed by Insider Monkey, Tremblant Capital, managed by Brett Barakett, holds the largest position in Nimble Storage Inc (NYSE:NMBL). Tremblant Capital has a $38.2 million position in the stock, comprising 2.2% of its 13F portfolio. On Tremblant Capital’s heels is Jim Simons of Renaissance Technologies, with a $22.3 million position; less than 0.1% of the investor’s 13F portfolio is allocated to the stock. Other professional money managers that hold long positions comprise Brian Ashford-Russell and Tim Woolley’s Polar Capital, Ken Hahn’s Quentec Asset Management, and Ken Griffin’s Citadel Investment Group.

Since Nimble Storage Inc (NYSE:NMBL) experienced declining sentiment from the smart money, it’s safe to say that there exists a select few hedgies who sold off their positions entirely in the first quarter. It’s worth mentioning that Brett Barakett’s Tremblant Capital sold off the largest investment of all the hedgies monitored by Insider Monkey, comprising about $2.1 million in stock, and Bruce Kovner’s Caxton Associates LP was right behind this move, as the fund cut about $1.2 million worth. These bearish behaviors are intriguing to say the least, as aggregate hedge fund interest fell by 6 funds in the first quarter.

Disclosure: None

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