Is Sensus Healthcare, Inc. (SRTS) a good stock to buy?
Financial regulations require hedge funds and high net worth investors who have crossed the $ 100 million threshold to file a report showing their positions at the end of each quarter. While not the intention, these deposits level the playing field to some extent for ordinary investors. The latest round of 13F deposits revealed the funds’ positions on March 31. At Insider Monkey, we’ve created an extensive database of over 866 of these established hedge funds and famous value investor records. In this article, we take a look at how these elite funds and top investors traded Sensus Healthcare, Inc. (NASDAQ:SRTS) on the basis of these deposits.
Is SRTS a good stock to buy? The best stock pickers took a bullish view. The number of bullish bets on hedge funds has improved by 1 lately. Sensus Healthcare, Inc. (NASDAQ:SRTS) appeared in the portfolios of 3 hedge funds at the end of March. The record high for this statistic is 4. Our calculations also showed that SRTS is not among the 30 most popular stocks among hedge funds (click for Q1 ranking). There were 2 hedge funds in our database with holdings in SRTS at the end of December.
Why are we paying the least attention to hedge fund sentiment? Our research has shown that a select group of hedge funds have outperformed S&P 500 ETFs by 115 percentage points since March 2017 (see details here). This is why we believe that hedge fund sentiment is an extremely useful indicator that investors should pay attention to.
Ken Griffin of Citadel Investment Group
At Insider Monkey, we scour multiple sources to uncover the next big investing idea. For example, an activist hedge fund wants to buy this $ 28 biotech share for $ 50. We therefore recommended a long position to our monthly premium newsletter subscribers. We go through lists like the 10 best stocks of batteries to choose the next Tesla which will offer a 10x return. Even though we only recommend positions in a tiny fraction of the companies we analyze, we check as many stocks as possible. We read letters from hedge fund investors and listen to market arguments at hedge fund conferences. You can subscribe to our free daily newsletter at our home page. With that in mind, let’s take a look at the key stock of hedge funds encompassing Sensus Healthcare, Inc. (NASDAQ:SRTS).
Do hedge funds think SRTS is a good stock to buy now?
Heading into the second quarter of 2021, a total of 3 of the hedge funds tracked by Insider Monkey were bullish on this stock, a 50% change from the previous quarter. By comparison, 1 hedge fund held stocks or bullish call options in SRTS a year ago. With hedge fund positions undergoing their usual ebb and flow, there is a “top tier” of outstanding hedge fund managers who were significantly increasing their holdings (or already accumulating large positions).
The largest stake in Sensus Healthcare, Inc. (NASDAQ: SRTS) was held by Invenomic Capital Management, who said he held shares worth $ 1.1 million at the end of December. It was followed by Citadel Investment Group with a position of $ 0.1 million. The only other hedge fund that is bullish on the company was Renaissance Technologies.
With a general uptrend among the heavyweights, specific fund managers were leading the herd of bulls. Citadelle investment group, managed by Ken Griffin, created the most senior position at Sensus Healthcare, Inc. (NASDAQ: SRTS). Citadel Investment Group had invested $ 0.1 million in the company at the end of the quarter.
Let’s review hedge fund activity in other stocks similar to Sensus Healthcare, Inc. (NASDAQ: SRTS). We’ll take a look at AMCON Distributing Co. (NYSE:SAID), Yield10 Bioscience, Inc. (NASDAQ:YTEN), Aerpio Pharmaceuticals, Inc. (NASDAQ:ARPO), Bank of the James Financial Group, Inc. (NASDAQ:BOTJ), AgeX Therapeutics, Inc. (NYSE:AGE), Research Solutions, Inc (NASDAQ:RSSS) and Cyren Ltd (NASDAQ:CYRN). The market valuations of this group of shares correspond to the market valuation of SRTS.
[table] Ticker, number of HF with positions, total value of HF positions (x1000), change of position HF DIT, 11259.0 YTEN, 7.7187.5 ARPO, 10.19438.2 BOTJ, 2.6131.1 AGE, 3.5420.0 RSSS, 2.3657, -2 CYRN, 3.1825.0 Medium, 4.6417.0.9 [/table]
See the table here if you have formatting problems.
As you can see, these stocks had an average of 4 hedge funds with bullish positions and the average amount invested in these stocks was $ 6 million. That figure was $ 1 million in the case of SRTS. Aerpio Pharmaceuticals, Inc. (NASDAQ:ARPO) is the most popular action in this table. On the other hand, AMCON Distributing Co. (NYSE:SAID) is the least popular with only 1 bullish hedge fund positions. Sensus Healthcare, Inc. (NASDAQ: SRTS) isn’t the least popular stock in this group, but hedge fund interest is still below average. Our overall hedge fund sentiment score for SRTS is 39.6. Stocks with a 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 have shown 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 11 and have consistently beaten the market by 3.3 percentage points. A small number of hedge funds were also right to bet on SRTS as the stock has returned 16.2% since the end of the first quarter (through 6/11) and outperformed the market by an even larger margin.
Disclosure: none. This article originally appeared on Monkey initiate.