Is CynergisTek, Inc. (CTEK) A Good Stock To Buy?
In this article we will analyze whether CynergisTek, Inc. (NYSE:CTEK) is a good investment right now by following the lead of some of the best investors in the world and piggybacking their ideas. There's no better way to get these firms' immense resources and analytical capabilities working for us than to follow their lead into their best ideas. While not all of these picks will be winners, our research shows that these picks historically outperformed the market by double digits annually.
Is CTEK a good stock to buy? Prominent investors were taking a bullish view. The number of long hedge fund positions increased by 1 recently. CynergisTek, Inc. (NYSE:CTEK) was in 4 hedge funds' portfolios at the end of March. The all time high for this statistic was 3. This means the bullish number of hedge fund positions in this stock currently sits at its all time high. Our calculations also showed that CTEK isn't among the 30 most popular stocks among hedge funds (click for Q1 rankings). There were 3 hedge funds in our database with CTEK positions at the end of the fourth quarter.
Hedge funds' reputation as shrewd investors has been tarnished in the last decade as their hedged returns couldn't keep up with the unhedged returns of the market indices. Hedge funds have more than $3.5 trillion in assets under management, so you can't expect their entire portfolios to beat the market by large margins. Our research was able to identify in advance a select group of hedge fund holdings that outperformed the S&P 500 ETFs by more than 115 percentage points since March 2017 (see the details here). So you can still find a lot of gems by following hedge funds' moves today.
John Overdeck of Two Sigma Advisors
At Insider Monkey, we scour multiple sources to uncover the next great investment idea. For example, an activist hedge fund wants to buy this $27 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 gander at the new hedge fund action surrounding CynergisTek, Inc. (NYSE:CTEK).
Do Hedge Funds Think CTEK Is A Good Stock To Buy Now?
At the end of the first quarter, a total of 4 of the hedge funds tracked by Insider Monkey were bullish on this stock, a change of 33% from one quarter earlier. On the other hand, there were a total of 0 hedge funds with a bullish position in CTEK a year ago. So, let's examine which hedge funds were among the top holders of the stock and which hedge funds were making big moves.
According to publicly available hedge fund and institutional investor holdings data compiled by Insider Monkey, Renaissance Technologies, holds the most valuable position in CynergisTek, Inc. (NYSE:CTEK). Renaissance Technologies has a $0.4 million position in the stock, comprising less than 0.1%% of its 13F portfolio. On Renaissance Technologies's heels is Citadel Investment Group, managed by Ken Griffin, which holds a $0.1 million position; less than 0.1%% of its 13F portfolio is allocated to the company. Some other members of the smart money that are bullish encompass Scott Stewart Miller's Greenhaven Road Investment Management, John Overdeck and David Siegel's Two Sigma Advisors and . In terms of the portfolio weights assigned to each position Greenhaven Road Investment Management allocated the biggest weight to CynergisTek, Inc. (NYSE:CTEK), around 0.01% of its 13F portfolio. Renaissance Technologies is also relatively very bullish on the stock, earmarking 0.0004 percent of its 13F equity portfolio to CTEK.
As one would reasonably expect, key hedge funds were leading the bulls' herd. Citadel Investment Group, managed by Ken Griffin, assembled the most outsized position in CynergisTek, Inc. (NYSE:CTEK). Citadel Investment Group had $0.1 million invested in the company at the end of the quarter.
Let's also examine hedge fund activity in other stocks similar to CynergisTek, Inc. (NYSE:CTEK). These stocks are PLUS THERAPEUTICS, Inc. (NASDAQ:PSTV), New Concept Energy, Inc. (NYSE:GBR), GEE Group Inc. (NYSE:JOB), InnSuites Hospitality Trust (NYSE:IHT), Barnwell Industries, Inc. (NYSE:BRN), Sphere 3D Corp. (NASDAQ:ANY), and Creative Realities, Inc. (NASDAQ:CREX). All of these stocks' market caps match CTEK's market cap.
[table] Ticker, No of HFs with positions, Total Value of HF Positions (x1000), Change in HF Position PSTV,1,147,-2 GBR,2,191,1 JOB,3,1722,0 IHT,2,297,1 BRN,2,1183,1 ANY,1,379,-1 CREX,1,152,-1 Average,1.7,582,-0.1 [/table]
View table here if you experience formatting issues.
As you can see these stocks had an average of 1.7 hedge funds with bullish positions and the average amount invested in these stocks was $1 million. That figure was $1 million in CTEK's case. GEE Group Inc. (NYSE:JOB) is the most popular stock in this table. On the other hand PLUS THERAPEUTICS, Inc. (NASDAQ:PSTV) is the least popular one with only 1 bullish hedge fund positions. Compared to these stocks CynergisTek, Inc. (NYSE:CTEK) is more popular among hedge funds. Our overall hedge fund sentiment score for CTEK is 86. 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. Unfortunately CTEK wasn't nearly as popular as these 5 stocks and hedge funds that were betting on CTEK were disappointed as the stock returned 6.3% since the end of the first quarter (through 6/11) 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 since 2019.
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Disclosure: None. This article was originally published at Insider Monkey.
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