The Insider Monkey team has completed processing the quarterly 13F filings for the March quarter submitted by the hedge funds and other money managers included in our extensive database. Most hedge fund investors experienced strong gains on the back of a strong market performance, which certainly propelled them to adjust their equity holdings so as to maintain the desired risk profile. As a result, the relevancy of these public filings and their content is indisputable, as they may reveal numerous high-potential stocks. The following article will discuss the smart money sentiment towards MICT, Inc. (NASDAQ:MICT).
Is MICT a good stock to buy? MICT, Inc. (NASDAQ:MICT) has experienced a decrease in enthusiasm from smart money lately. MICT, Inc. (NASDAQ:MICT) was in 3 hedge funds' portfolios at the end of March. The all time high for this statistic is 6. There were 6 hedge funds in our database with MICT positions at the end of the fourth quarter. Our calculations also showed that MICT isn't among the 30 most popular stocks among hedge funds (click for Q1 rankings).
In the 21st century investor’s toolkit there are dozens of formulas investors can use to analyze their holdings. A pair of the less known formulas are hedge fund and insider trading interest. Our researchers have shown that, historically, those who follow the top picks of the best hedge fund managers can outpace their index-focused peers by a very impressive 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 wants to buy this $28 biotech stock for $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. Keeping this in mind let's take a glance at the recent hedge fund action encompassing MICT, Inc. (NASDAQ:MICT).
Do Hedge Funds Think MICT Is A Good Stock To Buy Now?
At first quarter's end, a total of 3 of the hedge funds tracked by Insider Monkey were long this stock, a change of -50% from the previous quarter. Below, you can check out the change in hedge fund sentiment towards MICT over the last 23 quarters. So, let's find out which hedge funds were among the top holders of the stock and which hedge funds were making big moves.
Among these funds, Millennium Management held the most valuable stake in MICT, Inc. (NASDAQ:MICT), which was worth $1.8 million at the end of the fourth quarter. On the second spot was Citadel Investment Group which amassed $0.3 million worth of shares. LMR Partners was 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 Millennium Management allocated the biggest weight to MICT, Inc. (NASDAQ:MICT), around 0.0013% of its 13F portfolio. LMR Partners is also relatively very bullish on the stock, dishing out 0.0008 percent of its 13F equity portfolio to MICT.
Due to the fact that MICT, Inc. (NASDAQ:MICT) has witnessed bearish sentiment from hedge fund managers, it's safe to say that there is a sect of fund managers who were dropping their positions entirely heading into Q2. It's worth mentioning that Michael Gelband's ExodusPoint Capital said goodbye to the largest position of all the hedgies followed by Insider Monkey, totaling about $0.2 million in stock, and Renaissance Technologies was right behind this move, as the fund dumped about $0.1 million worth. These bearish behaviors are intriguing to say the least, as total hedge fund interest dropped by 3 funds heading into Q2.
Let's go over hedge fund activity in other stocks similar to MICT, Inc. (NASDAQ:MICT). We will take a look at Checkpoint Therapeutics, Inc. (NASDAQ:CKPT), BCB Bancorp, Inc. (NASDAQ:BCBP), FVCBankcorp, Inc. (NASDAQ:FVCB), Solar Senior Capital Ltd (NASDAQ:SUNS), Franklin Wireless Corp. (NASDAQ:FKWL), HireQuest, Inc. (NASDAQ:HQI), and LG Display Co Ltd. (NYSE:LPL). All of these stocks' market caps are closest to MICT's market cap.
[table] Ticker, No of HFs with positions, Total Value of HF Positions (x1000), Change in HF Position CKPT,7,10847,3 BCBP,3,21333,-1 FVCB,3,5130,0 SUNS,3,2228,0 FKWL,2,15745,2 HQI,3,4775,2 LPL,9,21826,2 Average,4.3,11698,1.1 [/table]
View table here if you experience formatting issues.
As you can see these stocks had an average of 4.3 hedge funds with bullish positions and the average amount invested in these stocks was $12 million. That figure was $2 million in MICT's case. LG Display Co Ltd. (NYSE:LPL) is the most popular stock in this table. On the other hand Franklin Wireless Corp. (NASDAQ:FKWL) is the least popular one with only 2 bullish hedge fund positions. MICT, Inc. (NASDAQ:MICT) is not the least popular stock in this group but hedge fund interest is still below average. Our overall hedge fund sentiment score for MICT is 24.1. 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 17.2% in 2021 through June 11th and still beat the market by 3.3 percentage points. A small number of hedge funds were also right about betting on MICT as the stock returned 12.1% since the end of the first quarter (through 6/11) and outperformed the market by an even larger margin.
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Disclosure: None. This article was originally published at Insider Monkey.