6. PowerFleet, Inc. (NASDAQ:AIOT)
Share Price as of July 12: $4.69
Number of Hedge Fund Holders: 17
PowerFleet, Inc. (NASDAQ:AIOT), previously known as I.D. Systems, Inc., offers Internet-of-Things solutions, including SaaS cloud-based application data, hosting, maintenance, support and consulting services, and more. The products track, manage, and optimize mobile assets/resources (such as industrial trucks, trailers, containers, and vehicle fleets) and collect data. The company’s technology enables businesses to monitor where their mobile assets are and how they’re doing in real-time, using wireless connections. It helps them handle their assets better by improving how they’re used, maintained, and operated. The technology also keeps assets safe from unauthorized use by controlling access and monitoring them closely. PowerFleet provides real-time visibility, control, and security over mobile assets, helping customers save time, money, and resources while enhancing safety and meeting regulations. This technology is used in various industries such as transportation, warehousing, manufacturing, and retail. The company provides its products under the PowerFleet, Pointer, and Cellocator brands.
In the first quarter, 17 hedge funds had stakes in PowerFleet, Inc. (NASDAQ:AIOT), with total positions worth $85.531 million. With over 6 million shares worth $32.16 million, Private Capital Management is the most prominent shareholder in the company, as of March 31. It takes the 6th spot on our list of best NASDAQ penny stocks to invest in.
In 2023, PowerFleet, Inc. (NASDAQ:AIOT) began a major effort to improve its position in the fast-growing IoT industry, which is expected to grow to $4.06 trillion by 2032 from $714.48 billion in 2024, according to a report by Fortune Business Insights.
The company introduced a new software platform called Unity that uses AI and data analysis to better manage assets and operations. This platform has been a big success for the company, helping it work more efficiently and find new sales opportunities among its current customers. As a result, it is spending less to find new customers and increased revenue streams.
In the last quarter of 2023, the company’s high-quality software revenue grew by 16% compared to the previous year. Moreover, total revenue performance in Q4 of 2023 marked a significant milestone, growing by 9% year-over-year, and it represented the company’s strongest performance in six quarters.
According to PowerFleet’s (NASDAQ:AIOT) management, market signals and customer feedback point to the effectiveness of the Unity platform in addressing critical points across the mobile asset market. The platform’s success in North America, a primary focus area for Unity’s go-to-market strategy, and a substantial 16% annual revenue growth is a testament to its success and adoption in the market.
The growth indicates that PowerFleet (NASDAQ:AIOT) is expanding its share of wallet (SOW) with existing customers and is able to attract new enterprise-level accounts. Looking forward, PowerFleet (NASDAQ:AIOT) anticipates that Unity will evolve and become a comprehensive IoT platform.
Wall Street analysts also look at PowerFleet’s (NASDAQ:AIOT) stock quite favorably as 7 analysts maintain a Buy-equivalent rating on the company and the stock has an average price target of $8.00, which represents an upside of 70.6%, as of July 12.
