Playtika Holding Corp. (PLTK): Are Hedge Funds Right About This Stock?

We at Insider Monkey have gone over 866 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 March 31st. In this article, we look at what those funds think of Playtika Holding Corp. (NASDAQ:PLTK) based on that data.

Is Playtika Holding Corp. (NASDAQ:PLTK) a great investment today? Money managers were betting on the stock. The number of long hedge fund bets went up by 21 recently. Playtika Holding Corp. (NASDAQ:PLTK) was in 21 hedge funds’ portfolios at the end of the first quarter of 2021. Our calculations also showed that PLTK isn’t among the 30 most popular stocks among hedge funds (click for Q1 rankings).

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Chase Coleman Tiger Global Management

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

At Q1’s end, a total of 21 of the hedge funds tracked by Insider Monkey were bullish on this stock, a change of 21 from one quarter earlier. The graph below displays the number of hedge funds with bullish position in PLTK over the last 23 quarters. So, let’s see which hedge funds were among the top holders of the stock and which hedge funds were making big moves.

Is PLTK A Good Stock To Buy?

According to Insider Monkey’s hedge fund database, Tiger Global Management LLC, managed by Chase Coleman, holds the most valuable position in Playtika Holding Corp. (NASDAQ:PLTK). Tiger Global Management LLC has a $149.7 million position in the stock, comprising 0.3% of its 13F portfolio. On Tiger Global Management LLC’s heels is Lei Zhang of Hillhouse Capital Management, with a $89.3 million position; 0.9% of its 13F portfolio is allocated to the stock. Remaining hedge funds and institutional investors with similar optimism contain Ken Griffin’s Citadel Investment Group, Stuart J. Zimmer’s Zimmer Partners and Michael Rockefeller and KarláKroeker’s Woodline Partners. In terms of the portfolio weights assigned to each position Yarra Square Partners allocated the biggest weight to Playtika Holding Corp. (NASDAQ:PLTK), around 2.97% of its 13F portfolio. Hillhouse Capital Management is also relatively very bullish on the stock, earmarking 0.88 percent of its 13F equity portfolio to PLTK.

Now, some big names have jumped into Playtika Holding Corp. (NASDAQ:PLTK) headfirst. Tiger Global Management LLC, managed by Chase Coleman, created the largest position in Playtika Holding Corp. (NASDAQ:PLTK). Tiger Global Management LLC had $149.7 million invested in the company at the end of the quarter. Lei Zhang’s Hillhouse Capital Management also made a $89.3 million investment in the stock during the quarter. The other funds with brand new PLTK positions are Ken Griffin’s Citadel Investment Group, Stuart J. Zimmer’s Zimmer Partners, and Michael Rockefeller and KarláKroeker’s Woodline Partners.

Let’s go over hedge fund activity in other stocks similar to Playtika Holding Corp. (NASDAQ:PLTK). We will take a look at The Toro Company (NYSE:TTC), Booz Allen Hamilton Holding Corporation (NYSE:BAH), BorgWarner Inc. (NYSE:BWA), Zynga Inc (NASDAQ:ZNGA), Dropbox, Inc. (NASDAQ:DBX), Cable One Inc (NYSE:CABO), and Camden Property Trust (NYSE:CPT). This group of stocks’ market valuations are closest to PLTK’s market valuation.

Ticker No of HFs with positions Total Value of HF Positions (x1000) Change in HF Position
TTC 32 1016572 1
BAH 29 178958 2
BWA 27 590548 0
ZNGA 47 1143096 -5
DBX 31 775813 -12
CABO 23 694559 6
CPT 24 614554 -2
Average 30.4 716300 -1.4

View table here if you experience formatting issues.

As you can see these stocks had an average of 30.4 hedge funds with bullish positions and the average amount invested in these stocks was $716 million. That figure was $445 million in PLTK’s case. Zynga Inc (NASDAQ:ZNGA) is the most popular stock in this table. On the other hand Cable One Inc (NYSE:CABO) is the least popular one with only 23 bullish hedge fund positions. Compared to these stocks Playtika Holding Corp. (NASDAQ:PLTK) is even less popular than CABO. Our overall hedge fund sentiment score for PLTK is 10. 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. Hedge funds dodged a bullet by taking a bearish stance towards PLTK. Our calculations showed that the top 10 most popular hedge fund stocks returned 95.8% in 2019 and 2020, and outperformed the S&P 500 ETF (SPY) by 40 percentage points. These stocks gained 23.8% in 2021 through July 16th but managed to beat the market again by 7.7 percentage points. Unfortunately PLTK wasn’t nearly as popular as these 5 stocks (hedge fund sentiment was very bearish); PLTK investors were disappointed as the stock returned -15.3% since the end of the first quarter (through 7/16) and underperformed the market. If you are interested in investing in large cap stocks with huge upside potential, you should check out the top 5 most popular stocks among hedge funds as most of these stocks already outperformed the market since 2019.

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