Where Do Hedge Funds Stand On PARTS iD, Inc. (ID)?

With the first-quarter round of 13F filings behind us it is time to take a look at the stocks in which some of the best money managers in the world preferred to invest or sell heading into the second quarter of 2021. One of these stocks was PARTS iD, Inc. (NYSE:ID).

Is PARTS iD, Inc. (NYSE:ID) worth your attention right now? Hedge funds were in an optimistic mood. The number of long hedge fund bets rose by 2 recently. PARTS iD, Inc. (NYSE:ID) was in 6 hedge funds’ portfolios at the end of the first quarter of 2021. The all time high for this statistic is 4. This means the bullish number of hedge fund positions in this stock currently sits at its all time high. Our calculations also showed that ID isn’t among the 30 most popular stocks among hedge funds (click for Q1 rankings). There were 4 hedge funds in our database with ID positions at the end of the fourth quarter.

If you’d ask most shareholders, hedge funds are perceived as slow, old investment tools of years past. While there are over 8000 funds with their doors open at the moment, We look at the upper echelon of this club, approximately 850 funds. These hedge fund managers direct bulk of all hedge funds’ total capital, and by shadowing their matchless stock picks, Insider Monkey has determined numerous investment strategies that have historically outpaced Mr. Market. Insider Monkey’s flagship short hedge fund strategy exceeded the S&P 500 short ETFs by around 20 percentage points annually since its inception in March 2017. 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 .

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. Now let’s review the key hedge fund action encompassing PARTS iD, Inc. (NYSE:ID).

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

At the end of March, a total of 6 of the hedge funds tracked by Insider Monkey were long this stock, a change of 50% from the fourth quarter of 2020. Below, you can check out the change in hedge fund sentiment towards ID over the last 23 quarters. With the smart money’s positions undergoing their usual ebb and flow, there exists an “upper tier” of key hedge fund managers who were boosting their holdings meaningfully (or already accumulated large positions).

More specifically, Alyeska Investment Group was the largest shareholder of PARTS iD, Inc. (NYSE:ID), with a stake worth $5.1 million reported as of the end of March. Trailing Alyeska Investment Group was Coliseum Capital, which amassed a stake valued at $2 million. Ancora Advisors, Millennium Management, and Clearline Capital 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 Coliseum Capital allocated the biggest weight to PARTS iD, Inc. (NYSE:ID), around 0.15% of its 13F portfolio. Alyeska Investment Group is also relatively very bullish on the stock, setting aside 0.07 percent of its 13F equity portfolio to ID.

As industrywide interest jumped, key money managers have been driving this bullishness. Ancora Advisors, managed by Frederick DiSanto, established the biggest position in PARTS iD, Inc. (NYSE:ID). Ancora Advisors had $0.4 million invested in the company at the end of the quarter. Israel Englander’s Millennium Management also made a $0.3 million investment in the stock during the quarter. The following funds were also among the new ID investors: Marc Majzner’s Clearline Capital and Michael Gelband’s ExodusPoint Capital.

Let’s go over hedge fund activity in other stocks similar to PARTS iD, Inc. (NYSE:ID). These stocks are Gran Tierra Energy Inc. (NYSE:GTE), Iteris Inc (NASDAQ:ITI), Oil-Dri Corporation of America (NYSE:ODC), Ucommune International Ltd (NASDAQ:UK), Resonant Inc. (NASDAQ:RESN), ACNB Corporation (NASDAQ:ACNB), and NuCana plc (NASDAQ:NCNA). This group of stocks’ market valuations match ID’s market valuation.

View table here if you experience formatting issues.

As you can see these stocks had an average of 6.3 hedge funds with bullish positions and the average amount invested in these stocks was $19 million. That figure was $8 million in ID’s case. Iteris Inc (NASDAQ:ITI) is the most popular stock in this table. On the other hand ACNB Corporation (NASDAQ:ACNB) is the least popular one with only 1 bullish hedge fund positions. PARTS iD, Inc. (NYSE:ID) is not the least popular stock in this group but hedge fund interest is still below average. Our overall hedge fund sentiment score for ID is 53.7. 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. This is a slightly negative signal and we’d rather spend our time researching stocks that hedge funds are piling on. 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 surpassed the market again by 4.8 percentage points. Unfortunately ID wasn’t nearly as popular as these 5 stocks (hedge fund sentiment was quite bearish); ID investors were disappointed as the stock returned -19.7% since the end of March (through 6/25) 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 in 2021.

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