Do Hedge Funds Think GOSS Is A Good Stock To Buy Now?
At the end of March, a total of 19 of the hedge funds tracked by Insider Monkey were bullish on this stock, a change of -5% from the fourth quarter of 2020. On the other hand, there were a total of 10 hedge funds with a bullish position in GOSS a year ago. So, let’s check out which hedge funds were among the top holders of the stock and which hedge funds were making big moves.
Is GOSS A Good Stock To Buy?
The largest stake in Gossamer Bio, Inc. (NASDAQ:GOSS) was held by Hillhouse Capital Management, which reported holding $68.6 million worth of stock at the end of December. It was followed by Palo Alto Investors with a $16.4 million position. Other investors bullish on the company included Octagon Capital Advisors, Ikarian Capital, and Cormorant Asset Management. In terms of the portfolio weights assigned to each position Octagon Capital Advisors allocated the biggest weight to Gossamer Bio, Inc. (NASDAQ:GOSS), around 4.92% of its 13F portfolio. Parkman Healthcare Partners is also relatively very bullish on the stock, setting aside 1.25 percent of its 13F equity portfolio to GOSS.
Due to the fact that Gossamer Bio, Inc. (NASDAQ:GOSS) has faced bearish sentiment from the entirety of the hedge funds we track, it’s easy to see that there exists a select few funds that decided to sell off their positions entirely by the end of the first quarter. At the top of the heap, Oleg Nodelman’s EcoR1 Capital cut the biggest position of all the hedgies monitored by Insider Monkey, worth close to $27.2 million in stock. Julian Baker and Felix Baker’s fund, Baker Bros. Advisors, also dropped its stock, about $4.6 million worth. These moves are important to note, as total hedge fund interest was cut by 1 funds by the end of the first quarter.
Let’s also examine hedge fund activity in other stocks — not necessarily in the same industry as Gossamer Bio, Inc. (NASDAQ:GOSS) but similarly valued. We will take a look at Ethan Allen Interiors Inc. (NYSE:ETH), Qutoutiao Inc. (NASDAQ:QTT), Tian Ruixiang Holdings Ltd (NASDAQ:TIRX), The ExOne Company (NASDAQ:XONE), Heidrick & Struggles International, Inc. (NASDAQ:HSII), Bright Scholar Education Holdings Limited (NYSE:BEDU), and Winmark Corporation (NASDAQ:WINA). This group of stocks’ market valuations resemble GOSS’s market valuation.
Ticker, No of HFs with positions, Total Value of HF Positions (x1000), Change in HF Position ETH,13,45423,-1 QTT,4,2833,1 TIRX,1,763,1 XONE,8,110929,-2 HSII,17,111444,5 BEDU,7,65735,1 WINA,10,86703,-1 Average,8.6,60547,0.6
View table here if you experience formatting issues.
As you can see these stocks had an average of 8.6 hedge funds with bullish positions and the average amount invested in these stocks was $61 million. That figure was $158 million in GOSS’s case. Heidrick & Struggles International, Inc. (NASDAQ:HSII) is the most popular stock in this table. On the other hand Tian Ruixiang Holdings Ltd (NASDAQ:TIRX) is the least popular one with only 1 bullish hedge fund positions. Compared to these stocks Gossamer Bio, Inc. (NASDAQ:GOSS) is more popular among hedge funds. Our overall hedge fund sentiment score for GOSS is 81.1. 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 23.8% in 2021 through July 16th and still beat the market by 7.7 percentage points. Unfortunately GOSS wasn’t nearly as popular as these 5 stocks and hedge funds that were betting on GOSS were disappointed as the stock returned -21% since the end of the first quarter (through 7/16) 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.
Volatile ride for Gossamer Bio Inc. stock price on Monday moving between $12.36 and $14.10 (Updated on September 27, 2021)
Buy or Hold candidate since 2021-08-23Gain 36.29%
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The Gossamer Bio Inc. stock price gained 8.85% on the last trading day (Monday, 27th Sep 2021), rising from $11.87 to $12.92. During the day the stock fluctuated 14.08% from a day low at $12.36 to a day high of $14.10. The price has risen in 6 of the last 10 days and is up by 24.11% over the past 2 weeks. Volume has increased on the last day along with the price, which is a positive technical sign, and, in total, 1 million more shares were traded than the day before. In total, 2 million shares were bought and sold for approximately $25.23 million.
Given the current short-term trend, the stock is expected to rise 45.6% during the next 3 months and, with a 90% probability hold a price between $15.14 and $18.81 at the end of this 3-month period.
Signals & Forecast
Mostly positive signals in the chart today. The Gossamer Bio Inc. stock holds buy signals from both short and long-term moving averages giving a positive forecast for the stock. Also, there is a general buy signal from the relation between the two signals where the short-term average is above the long-term average. On corrections down, there will be some support from the lines at $11.62 and $9.92. A breakdown below any of these levels will issue sell signals. A buy signal was issued from a pivot bottom point on Monday, July 19, 2021, and so far it has risen 78.21%. Further rise is indicated until a new top pivot has been found. Furthermore, there is a buy signal from the 3 month Moving Average Convergence Divergence (MACD). Volume is rising along with the price. This is considered to be a good technical signal.
Support, Risk & Stop-loss
On the downside, the stock finds support just below today’s level from accumulated volume at $11.87 and $10.52. There is natural risk involved when a stock is testing a support level, since if this is broken, the stock then may fall to the next support level. In this case, Gossamer Bio Inc. finds support just below today’s level at $11.87. If this is broken, then the next support from accumulated volume will be at $10.52 and $10.27.
$11.87
$12.92
This stock may move much during the day (volatility) and with a large prediction interval from the Bollinger Band this stock is considered to be «high risk». During the last day, the stock moved $1.74 between high and low, or 14.08%. For the last week, the stock has had a daily average volatility of 8.75%.
The Gossamer Bio Inc. stock is overbought on RSI14 and lies in the upper part of the trend. Normally this may pose a good selling opportunity for the short-term trader, but some stocks may go long and hard while being overbought. Regardless, the high RSI together with the trend position increases the risk and higher daily movements (volatility) should be expected. A correction down in the nearby future seems very likely and it is of great importance that the stock manages to break the trend before that occurs.
Our recommended stop-loss:
$12.48
(-3.40%)
(This stock has high daily movements and this gives high risk. The RSI14 is 80 and this increases the risk substantially. There is a buy signal from a pivot bottom found 49 days ago.)
Is Gossamer Bio Inc. stock A Buy?
Gossamer Bio Inc. holds several positive signals and is within a strong rising trend. As the old saying says, «Let the trend be your friend.'». We therefore consider it to be a good choice at these current levels and we are expecting further gains during the next 3 months. We have upgraded our analysis conclusion for this stock since the last evaluation from a Buy to a Strong Buy candidate.
Current score:
7.688
Predicted Opening Price for Gossamer Bio Inc. of Tuesday, September 28, 2021
The predicted opening price is based on yesterday’s movements between high, low, and the closing price.
| Fair opening price September 28, 2021 | Current price |
|---|---|
| $13.13 |
$12.92 (Undervalued) |
Strong Buy Candidate
Upgraded
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Analyst Ratings
On August 10, 2021 «SVB Leerink» gave «$19.00 — $15.00» rating for GOSS. The price target was set to $8.36+1.3%.
Volatility and Risk
Daily Average Volatility:
8.75 %
Overall Risk:
Very High
High
Medium
Low
Very Low
Volatility
8.75 %Daily Average Volatility
Overall Risk
Very HighHighMediumLowVery Low
Support & Resistance
No Resistance FoundPrice: $12.92Support: $11.87
