Should I Avoid Momentive Global Inc (MNTV)?

The latest 13F reporting period has come and gone, and Insider Monkey is again at the forefront when it comes to making use of this gold mine of data. We at Insider Monkey have plowed through 867 13F filings that hedge funds and well-known value 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 investors think of Momentive Global Inc (NASDAQ:MNTV).

Is Momentive Global Inc (NASDAQ:MNTV) a first-rate investment right now? Investors who are in the know were reducing their bets on the stock. The number of long hedge fund positions decreased by 1 in recent months. Momentive Global Inc (NASDAQ:MNTV) was in 27 hedge funds’ portfolios at the end of the third quarter of 2021. The all time high for this statistic is 33. Our calculations also showed that MNTV isn’t among the 30 most popular stocks among hedge funds (click for Q3 rankings). There were 28 hedge funds in our database with MNTV positions at the end of the second quarter.

At Insider Monkey, we scour multiple sources to uncover the next great investment idea. For example, lithium prices have more than doubled over the past year, so we go through lists like the 10 best EV stocks to pick the next Tesla that will deliver a 10x return. Even though we recommend positions in only a tiny fraction of the companies we analyze, we check out as many stocks as we can. Now we’re going to review the new hedge fund action regarding Momentive Global Inc (NASDAQ:MNTV).

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

At the end of the third quarter, a total of 27 of the hedge funds tracked by Insider Monkey were bullish on this stock, a change of -4% from the second quarter of 2021. The graph below displays the number of hedge funds with bullish position in MNTV over the last 25 quarters. With hedge funds’ positions undergoing their usual ebb and flow, there exists a few noteworthy hedge fund managers who were upping their holdings meaningfully (or already accumulated large positions).

More specifically, Legion Partners Asset Management was the largest shareholder of Momentive Global Inc (NASDAQ:MNTV), with a stake worth $39.4 million reported as of the end of September. Trailing Legion Partners Asset Management was Park West Asset Management, which amassed a stake valued at $24.5 million. Royce & Associates, ThornTree Capital Partners, and Washington Harbour Partners were also very fond of the stock, becoming one of the largest hedge fund holders of the company. In terms of the portfolio weights assigned to each position Legion Partners Asset Management allocated the biggest weight to Momentive Global Inc (NASDAQ:MNTV), around 8.1% of its 13F portfolio. Akaris Global Partners is also relatively very bullish on the stock, earmarking 7.46 percent of its 13F equity portfolio to MNTV.

Judging by the fact that Momentive Global Inc (NASDAQ:MNTV) has faced a decline in interest from the smart money, we can see that there exists a select few fund managers that decided to sell off their positions entirely by the end of the third quarter. It’s worth mentioning that David Atterbury’s Whetstone Capital Advisors cut the biggest stake of the “upper crust” of funds monitored by Insider Monkey, totaling close to $10.9 million in stock, and Matthew Hulsizer’s PEAK6 Capital Management was right behind this move, as the fund said goodbye to about $2.6 million worth. These transactions are important to note, as aggregate hedge fund interest fell by 1 funds by the end of the third quarter.

Let’s now review hedge fund activity in other stocks – not necessarily in the same industry as Momentive Global Inc (NASDAQ:MNTV) but similarly valued. These stocks are Nova Ltd. (NASDAQ:NVMI), Uniti Group Inc. (NASDAQ:UNIT), Olink Holding AB (publ) (NASDAQ:OLK), Kirby Corporation (NYSE:KEX), Kontoor Brands, Inc. (NYSE:KTB), Kennametal Inc. (NYSE:KMT), and Apellis Pharmaceuticals, Inc. (NASDAQ:APLS). This group of stocks’ market values are similar to MNTV’s market value.

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As you can see these stocks had an average of 20 hedge funds with bullish positions and the average amount invested in these stocks was $302 million. That figure was $192 million in MNTV’s case. Apellis Pharmaceuticals, Inc. (NASDAQ:APLS) is the most popular stock in this table. On the other hand Uniti Group Inc. (NASDAQ:UNIT) is the least popular one with only 14 bullish hedge fund positions. Momentive Global Inc (NASDAQ:MNTV) is not the most popular stock in this group but hedge fund interest is still above average. Our overall hedge fund sentiment score for MNTV is 69.2. 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 5 most popular stocks among hedge funds returned 95.8% in 2019 and 2020, and outperformed the S&P 500 ETF (SPY) by 40 percentage points. These stocks gained 31.1% in 2021 through December 9th and still beat the market by 5.1 percentage points. Hedge funds were also right about betting on MNTV as the stock returned 9.5% since the end of Q3 (through 12/9) and outperformed the market. Hedge funds were rewarded for their relative bullishness.

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