A whopping number of 13F filings filed with U.S. Securities and Exchange Commission has been processed by Insider Monkey so that individual investors can look at the overall hedge fund sentiment towards the stocks included in their watchlists. These freshly-submitted public filings disclose money managers’ equity positions as of the end of the three-month period that ended March 31st, so let’s proceed with the discussion of the hedge fund sentiment on Zynerba Pharmaceuticals Inc (NASDAQ:ZYNE).
Zynerba Pharmaceuticals Inc (NASDAQ:ZYNE) shares haven’t seen a lot of action during the second quarter. Overall, hedge fund sentiment was unchanged. The stock was in 6 hedge funds’ portfolios at the end of March. Our calculations also showed that ZYNE isn’t among the 30 most popular stocks among hedge funds (click for Q1 rankings). The level and the change in hedge fund popularity aren’t the only variables you need to analyze to decipher hedge funds’ perspectives. A stock may witness a boost in popularity but it may still be less popular than similarly priced stocks. That’s why at the end of this article we will examine companies such as Lazydays Holdings, Inc. (NASDAQ:LAZY), Exicure, Inc. (NASDAQ:XCUR), and L.B. Foster Company (NASDAQ:FSTR) to gather more data points.
In the financial world there are plenty of metrics stock market investors put to use to evaluate their holdings. Two of the most useful metrics are hedge fund and insider trading sentiment. Our researchers have shown that, historically, those who follow the top picks of the best hedge fund managers can outclass the S&P 500 by a significant margin (see the details here). Also, our monthly newsletter’s portfolio of long stock picks returned 206.8% since March 2017 (through May 2021) and beat the S&P 500 Index by more than 115 percentage points. You can download a sample issue of this newsletter on our website .
Michael Gelband of ExodusPoint Capital
At Insider Monkey, we scour multiple sources to uncover the next great investment idea. For example, an activist hedge fund owns nearly 40% of this $24 biotech stock and is trying to buy the rest for around $50. So, we recommended a long position to our monthly premium newsletter subscribers. We go through lists like the 10 best battery 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. 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 homepage. With all of this in mind we’re going to take a look at the key hedge fund action regarding Zynerba Pharmaceuticals Inc (NASDAQ:ZYNE).
Do Hedge Funds Think ZYNE Is A Good Stock To Buy Now?
Heading into the second quarter of 2021, a total of 6 of the hedge funds tracked by Insider Monkey held long positions in this stock, a change of 0% from the previous quarter. The graph below displays the number of hedge funds with bullish position in ZYNE over the last 23 quarters. So, let’s examine which hedge funds were among the top holders of the stock and which hedge funds were making big moves.
The largest stake in Zynerba Pharmaceuticals Inc (NASDAQ:ZYNE) was held by D E Shaw, which reported holding $1.4 million worth of stock at the end of December. It was followed by Citadel Investment Group with a $1 million position. Other investors bullish on the company included Two Sigma Advisors, Citadel Investment Group, and Millennium Management. In terms of the portfolio weights assigned to each position 0 allocated the biggest weight to Zynerba Pharmaceuticals Inc (NASDAQ:ZYNE), around 0.03% of its 13F portfolio. 0 is also relatively very bullish on the stock, dishing out 0.0021 percent of its 13F equity portfolio to ZYNE.
Judging by the fact that Zynerba Pharmaceuticals Inc (NASDAQ:ZYNE) has faced declining sentiment from the entirety of the hedge funds we track, it’s easy to see that there were a few fund managers that slashed their entire stakes by the end of the first quarter. It’s worth mentioning that Renaissance Technologies sold off the biggest position of the “upper crust” of funds watched by Insider Monkey, valued at close to $0.5 million in stock, and Daniel S. Och’s OZ Management was right behind this move, as the fund cut about $0.3 million worth. These transactions are interesting, as total hedge fund interest stayed the same (this is a bearish signal in our experience).
Let’s now take a look at hedge fund activity in other stocks – not necessarily in the same industry as Zynerba Pharmaceuticals Inc (NASDAQ:ZYNE) but similarly valued. These stocks are Lazydays Holdings, Inc. (NASDAQ:LAZY), Exicure, Inc. (NASDAQ:XCUR), L.B. Foster Company (NASDAQ:FSTR), Universal Technical Institute, Inc. (NYSE:UTI), CIM Commercial Trust Corporation (NASDAQ:CMCT), Travelzoo (NASDAQ:TZOO), and TD Holdings, Inc. (NASDAQ:GLG). This group of stocks’ market valuations match ZYNE’s market valuation.
| Ticker | No of HFs with positions | Total Value of HF Positions (x1000) | Change in HF Position |
|---|---|---|---|
| LAZY | 10 | 33874 | 0 |
| XCUR | 9 | 19857 | 1 |
| FSTR | 15 | 36919 | 3 |
| UTI | 9 | 41957 | -3 |
| CMCT | 1 | 11739 | -2 |
| TZOO | 9 | 23193 | 2 |
| GLG | 1 | 303 | 0 |
| Average | 7.7 | 23977 | 0.1 |
View table here if you experience formatting issues.
As you can see these stocks had an average of 7.7 hedge funds with bullish positions and the average amount invested in these stocks was $24 million. That figure was $3 million in ZYNE’s case. L.B. Foster Company (NASDAQ:FSTR) is the most popular stock in this table. On the other hand CIM Commercial Trust Corporation (NASDAQ:CMCT) is the least popular one with only 1 bullish hedge fund positions. Zynerba Pharmaceuticals Inc (NASDAQ:ZYNE) is not the least popular stock in this group but hedge fund interest is still below average. Our overall hedge fund sentiment score for ZYNE is 37.9. 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 19.3% in 2021 through June 25th and still beat the market by 4.8 percentage points. A small number of hedge funds were also right about betting on ZYNE as the stock returned 28.6% since the end of the first quarter (through 6/25) and outperformed the market by an even larger margin.
Follow Zynerba Pharmaceuticals Inc. (NASDAQ:ZYNE)
Follow Zynerba Pharmaceuticals Inc. (NASDAQ:ZYNE)
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Disclosure: None. This article was originally published at Insider Monkey.
