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 Points International Ltd (NASDAQ:PCOM) based on that data.
Is PCOM a good stock to buy now? Points International Ltd (NASDAQ:PCOM) was in 6 hedge funds' portfolios at the end of March. The all time high for this statistic is 10. PCOM investors should pay attention to a decrease in hedge fund sentiment in recent months. There were 7 hedge funds in our database with PCOM holdings at the end of December. Our calculations also showed that PCOM isn't among the 30 most popular stocks among hedge funds (click for Q1 rankings).
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Nick Thakore of Diametric 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 analyze the latest hedge fund action surrounding Points International Ltd (NASDAQ:PCOM).
Do Hedge Funds Think PCOM 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 bullish on this stock, a change of -14% from the previous quarter. The graph below displays the number of hedge funds with bullish position in PCOM 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 PCOM A Good Stock To Buy?
The largest stake in Points International Ltd (NASDAQ:PCOM) was held by Harspring Capital Management, which reported holding $13.9 million worth of stock at the end of December. It was followed by Renaissance Technologies with a $10.3 million position. Other investors bullish on the company included Roubaix Capital, Galibier Capital Management, and Arrowstreet Capital. In terms of the portfolio weights assigned to each position Harspring Capital Management allocated the biggest weight to Points International Ltd (NASDAQ:PCOM), around 2.43% of its 13F portfolio. Roubaix Capital is also relatively very bullish on the stock, designating 1.92 percent of its 13F equity portfolio to PCOM.
Since Points International Ltd (NASDAQ:PCOM) has experienced falling interest from the entirety of the hedge funds we track, it's safe to say that there is a sect of hedge funds that decided to sell off their positions entirely heading into Q2. Interestingly, Nick Thakore's Diametric Capital said goodbye to the biggest stake of the "upper crust" of funds watched by Insider Monkey, comprising about $0.4 million in stock. Gavin Saitowitz and Cisco J. del Valle's fund, Prelude Capital (previously Springbok Capital), also dropped its stock, about $0.2 million worth. These transactions are important to note, as total hedge fund interest was cut by 1 funds heading into Q2.
Let's now review hedge fund activity in other stocks similar to Points International Ltd (NASDAQ:PCOM). These stocks are Aptinyx Inc. (NASDAQ:APTX), Shore Bancshares, Inc. (NASDAQ:SHBI), Sierra Oncology, Inc. (NASDAQ:SRRA), VolitionRX Limited (NYSE:VNRX), Pacific Mercantile Bancorp (NASDAQ:PMBC), Adamas Pharmaceuticals Inc (NASDAQ:ADMS), and HyreCar Inc. (NASDAQ:HYRE). This group of stocks' market caps resemble PCOM's market cap.
[table] Ticker, No of HFs with positions, Total Value of HF Positions (x1000), Change in HF Position APTX,8,35957,-3 SHBI,8,34631,3 SRRA,14,116969,-1 VNRX,5,515,4 PMBC,7,32539,3 ADMS,18,66719,5 HYRE,16,52504,2 Average,10.9,48548,1.9 [/table]
As you can see these stocks had an average of 10.9 hedge funds with bullish positions and the average amount invested in these stocks was $49 million. That figure was $30 million in PCOM's case. Adamas Pharmaceuticals Inc (NASDAQ:ADMS) is the most popular stock in this table. On the other hand VolitionRX Limited (NYSE:VNRX) is the least popular one with only 5 bullish hedge fund positions. Points International Ltd (NASDAQ:PCOM) is not the least popular stock in this group but hedge fund interest is still below average. Our overall hedge fund sentiment score for PCOM is 25.8. 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 beat the market by 4.8 percentage points. A small number of hedge funds were also right about betting on PCOM, though not to the same extent, as the stock returned 12.2% since the end of Q1 (through June 25th) and outperformed the market.
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