Is WM Technology Inc. (MAPS) A Good Stock To Buy?

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Before we spend countless hours researching a company, we like to analyze what insiders, hedge funds and billionaire investors think of the stock first. This is a necessary first step in our investment process because our research has shown that the elite investors’ consensus returns have been exceptional. In the following paragraphs, we find out what the billionaire investors and hedge funds think of WM Technology Inc. (NASDAQ:MAPS).

Is WM Technology Inc. (NASDAQ:MAPS) a good stock to buy? The smart money was getting more optimistic. The number of bullish hedge fund bets went up by 21 lately. WM Technology Inc. (NASDAQ:MAPS) was in 21 hedge funds’ portfolios at the end of September. Our calculations also showed that MAPS isn’t among the 30 most popular stocks among hedge funds (click for Q2 rankings).

At Insider Monkey, we scour multiple sources to uncover the next great investment idea. For example, lithium prices have more than doubled over the past year, so we go through lists like the 10 best EV 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. With all of this in mind let’s view the recent hedge fund action encompassing WM Technology Inc. (NASDAQ:MAPS).

Christian Leone of Luxor Capital GroupChristian Leone

Do Hedge Funds Think MAPS Is A Good Stock To Buy Now?

Heading into the fourth quarter of 2021, a total of 21 of the hedge funds tracked by Insider Monkey were long this stock, a change of 21 from the previous quarter. On the other hand, there were a total of 0 hedge funds with a bullish position in MAPS 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.

Among these funds, Rima Senvest Management held the most valuable stake in WM Technology Inc. (NASDAQ:MAPS) , which was worth $83.6 million at the end of the third quarter. On the second spot was Luxor Capital Group which amassed $79 million worth of shares. Falcon Edge Capital, Pura Vida Investments, and Rima Senvest Management were 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 Hunt Lane Capital allocated the biggest weight to WM Technology Inc. (NASDAQ:MAPS) , around 3.72% of its 13F portfolio. Falcon Edge Capital is also relatively very bullish on the stock, designating 3.18 percent of its 13F equity portfolio to MAPS.

As aggregate interest increased, key money managers were breaking ground themselves. Pura Vida Investments, managed by Efrem Kamen, created the largest position in WM Technology Inc. (NASDAQ:MAPS) . Pura Vida Investments had $23.4 million invested in the company at the end of the quarter. Christian Leone’s Luxor Capital Group also made a $11.6 million investment in the stock during the quarter. The other funds with new positions in the stock are Matthew Hulsizer’s PEAK6 Capital Management, Jimmy Levin’s Sculptor Capital, and Warren Lammert’s Granite Point Capital.

Let’s now review hedge fund activity in other stocks – not necessarily in the same industry as WM Technology Inc. (NASDAQ:MAPS) but similarly valued. These stocks are Centennial Resource Development, Inc. (NASDAQ:CDEV), Burning Rock Biotech Limited (NASDAQ:BNR), Desktop Metal, Inc. (NYSE:DM), Goldman Sachs BDC, Inc. (NYSE:GSBD), Healthcare Services Group, Inc. (NASDAQ:HCSG), LendingTree, Inc (NASDAQ:TREE), and Himax Technologies, Inc. (NASDAQ:HIMX). All of these stocks’ market caps resemble MAPS’s market cap.

[table] Ticker, No of HFs with positions, Total Value of HF Positions (x1000), Change in HF Position CDEV,19,137080,-3 BNR,11,52476,2 DM,13,31978,-14 GSBD,5,19214,-2 HCSG,21,138759,3 TREE,24,161274,-6 HIMX,18,206039,2 Average,15.9,106689,-2.6 [/table]

View table here if you experience formatting issues.

As you can see these stocks had an average of 15.9 hedge funds with bullish positions and the average amount invested in these stocks was $107 million. That figure was $307 million in MAPS’s case. LendingTree, Inc (NASDAQ:TREE) is the most popular stock in this table. On the other hand Goldman Sachs BDC, Inc. (NYSE:GSBD) is the least popular one with only 5 bullish hedge fund positions. WM Technology Inc. (NASDAQ:MAPS) is not the most popular stock in this group but hedge fund interest is still above average. Our overall hedge fund sentiment score for MAPS is 77.4. 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. This is a slightly positive signal but we’d rather spend our time researching stocks that hedge funds are piling on. 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 29.6% in 2021 and beat the market again by 3.6 percentage points. Unfortunately MAPS wasn’t nearly as popular as these 5 stocks and hedge funds that were betting on MAPS were disappointed as the stock returned -58.8% since the end of September (through 12/31) 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 many of these stocks already outperformed the market since 2019.

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Disclosure: None. This article was originally published at Insider Monkey.