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Talend’s Stock Is A Hedge Fund Haven

Posted on October 9th, 2018

Talend SA (TLND) stock has climbed by over 82% in 2018 driven by strong revenue growth. The stock’s growth hasn’t gone unnoticed because hedge funds and institutions were adding the stock to their portfolio in the second quarter. As a result, Whale Wisdom included the stock in the WhaleWisdom 100 Index in the middle of August.

The strong performance has come as analysts have been increasing their revenue targets for the company since the start of 2018. The stock has performed well over the past three years with the shares more than doubling taking the company’s market capitalization to about $2.1 billion.

Aggressive Buying

During the second quarter, the number of total 13F shares held by institutions increased by over 11% to 22.6 million. Hedge funds were buying the shares even more aggressively, with the number of total 13F shares held rising by over 38% to 7.8 million.  In fact, of the 24 hedge funds that own the stock one-third of them own it within their top 10 holdings.

During, the quarter 54 institutions started or added to their position while 52 exited or reduced their holdings. Among hedge funds, 15 started or increased their stakes while 15 reduced or exited the stock. 

Strong Growth Prospects

Investors are attracted to the data integration provider because revenue for the company is expected to explode over the coming years. For example, analysts see revenue growing at a compounded annual growth rate of almost 31% from 2018 through 2020. Revenue in 2017 totaled under $149 billion and is forecast to more than double to $332 million by 2020.

The estimates for revenue have been climbing too. Since January revenue estimates for 2018 have increased by 6.2%, while the estimates for 2019 have increased by 3.5%.


Analysts forecast big profit growth for the company in the coming years. For example, analysts see the company losing $0.49 per share in 2018. However, that loss is expected to become a profit of $0.67 per share by 2020.

One major drawback for the stock is its current valuation. The stock is a big bet on future growth because shares trade at a 2-year forward PE ratio of 101 which is a an extremely high PE ratio. It would suggest that growth expectations for this company are high and offer no margin for error.

This entry was posted on Tuesday, October 9th, 2018 at 8:20 am and is filed under 13F, Stock, WhaleIndex. You can follow any responses to this entry through the RSS 2.0 feed. Both comments and pings are currently closed.

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