In this piece, we will take a look at the ten best stocks under $30 according to billionaire D.E. Shaw. If you want to skip the introduction of the billionaire, then take a look at 5 Best Stocks Under $30 According to DE Shaw.
Amidst the ongoing turmoil in the stock market that has seen major indices lose big chunks of value, it is time to take a look at some cheap stocks that are seeing hedge fund interest. One of the most well known hedge funds on Wall Street is D.E. Shaw, which is based in New York, United States.
An interesting fact about the hedge fund is that it might have inadvertently contributed to Amazon.com, Inc.’s (NASDAQ:AMZN) founder and former chief executive officer Mr. Jeff Bezos to have become the world’s richest person. Prior to setting up Amazon, Mr. Bezos rose in ranks at D.E. Shaw and went on to become a senior vice president, but left the role after becoming dissatisfied.
Moving towards Dr. Shaw, the executive is known for his interest in computer science. He received his doctorate degree from Stanford University in 1980, becoming another billionaire to attend the renowned university that is also famous for being associated with search engine giant Google’s founders Mr. Larry Page and Mr. Sergey Brin.
After graduating from Stanford, Dr. Shaw worked as an assistant professor and continued pursuing his passion for computer science. He would continue to do so even after setting up D.E. Shaw.
However, D.E. Shaw was not the executive’s first tryst in the financial world. He started his career at the investment bank, Morgan Stanley, in 1986 where he worked at setting up an in-house trading group. He is credited for having contributed significantly to Morgan Stanley’s quantitative investments at the time.
After a brief stint at Morgan Stanley, Dr. Shaw would move forward and set up D.E. Shaw in 1988. The hedge fund follows its founder’s investment approach and takes a quantitative look at stocks after meticulously researching them. Within six years the hedge fund would go on and deliver as much as 26% in returns to investors.
Dr. Shaw has since then moved on from managing his hedge fund. He is currently heading a private research firm in New York titled D.E. Shaw Research (DESRES). This group focuses on several areas such as biotechnology and computer science. Dr. Shaw is also one of the richest people in the world, being worth a cool $7.5 billion as of May 2022 according to Forbes Magazine.
DE Shaw’s hedge fund had a portfolio that was worth a whopping $106 billion as the first quarter of this year came to an end. Out of the countless companies present in it, some that are likely to catch your eye are the Ford Motor Company (NYSE:F), AMC Entertainment Holdings, Inc. (NYSE:AMC), and The Coca-Cola Company (NYSE:KO).
David E. Shaw of D.E. Shaw
Our Methodology
In order to pick D.E. Shaw’s (the fund) top under $30 stocks, we took a look at its Q1 2022 SEC filings. After the companies were picked and sorted, we took a look at their earnings reports, investor letters, analyst ratings, large shareholdings, and overall hedge fund sentiment gathered through Insider Monkey’s database of 912 hedge fund filings for the first quarter of this year.
10 Best Stocks Under $30 According to DE Shaw
10. Pinterest, Inc. (NYSE:PINS)
D.E. Shaw’s Stake Value: $123 million
Percentage of D.E. Shaw’s 13F Portfolio: 0.12%
Number of Hedge Fund Holders: 56
Stock Price as of May 25, 2022: $18.14
Pinterest, Inc. (NYSE:PINS) is an internet company that allows its users to accumulate images and other ideas on its website.
For the first quarter of 2022, D.E. Shaw had held a $123 million stake in Pinterest, Inc. (NYSE:PINS) by owning 5 million shares of the company. Insider Monkey’s Q1 2022 912 hedge fund survey picked out 56 as also having invested in the firm.
Pinterest, Inc. (NYSE:PINS) raked in $574 million in revenue and $0.10 in non-GAAP EPS for its fiscal Q1, beating estimates for revenue and EPS. DA Davidson reduced its price target to $20 from $33 in April 2022, worrying that engagement headwinds might persist in the future.
Pinterest, Inc. (NYSE:PINS)’s largest investor is Natixis Global Asset Management’s Harris Associates. The firm owns 18 million shares that are worth $456 million.
AMC Entertainment Holdings, Inc. (NYSE:AMC), Ford Motor Company (NYSE:F), and The Coca-Cola Company (NYSE:KO) meet Pinterest, Inc. (NYSE:PINS) as a top D.E. Shaw stock pick.
9. Sunrun Inc. (NASDAQ:RUN)
D.E. Shaw’s Stake Value: $128 million
Percentage of D.E. Shaw’s 13F Portfolio: 0.12%
Number of Hedge Fund Holders: 37
Stock Price as of May 25, 2022: $21.98
Sunrun Inc. (NASDAQ:RUN) is a residential solar energy systems provider based in the United States. The company sells and maintains solar energy systems for households and it also provides solar panels, racks, and batteries. It is headquartered in San Francisco, California.
D.E. Shaw held a $128 million stake in Sunrun Inc. (NASDAQ:RUN) as the first quarter of this year came to an end. This came in the form of 4.2 million shares and the stake represented a small 0.12% of the firm’s investment portfolio. Insider Monkey’s 912 hedge fund survey for the same time period outlined that 37 had also bought the company’s shares.
Sunrun Inc. (NASDAQ:RUN) posted $495 million in revenue and -$0.42 in GAAP EPS for its fiscal Q1, beating Wall Street revenue estimates but missing them for EPS. Morgan Stanley kept an $89 price target for the company in May 2022, sharing that its installation guidance was a pleasant surprise.
Sunrun Inc. (NASDAQ:RUN)’s largest investor is William B. Gray’s Orbis Investment Management which owns 10 million shares that are worth $325 million.
8. Transocean Ltd. (NYSE:RIG)
D.E. Shaw’s Stake Value: $132 million
Percentage of D.E. Shaw’s 13F Portfolio: 0.12%
Number of Hedge Fund Holders: 30
Stock Price as of May 25, 2022: $4.15
Transocean Ltd. (NYSE:RIG) is an oil and gas company that is headquartered in Steinhausen, Switzerland. The company provides oil and gas drilling services and equipment to firms that extract oil offshore. The company owns drilling units and floaters as part of its portfolio that serves both government and private sector needs.
Piper Sandler raised its price target to $3.85 from $3 in April 2022, outlining that the company should benefit from higher crude oil prices.
Dr. Shaw’s investment firm owned 28 million Transocean Ltd. (NYSE:RIG) shares for a $132 million stake during Q1 2022 making it the company’s largest investor. Insider Monkey’s 912 hedge fund portfolio analysis for the same time period revealed that 30 out of 912 hedge funds had holdings in the firm.
David Greenspan’s Slate Path Capital is Transocean Ltd. (NYSE:RIG)’s second largest investor through a $61 million stake. This comes through the fund owning 13 million shares of the oil and gas company.
7. Cenovus Energy Inc. (NYSE:CVE)
D.E. Shaw’s Stake Value: $140 million
Percentage of D.E. Shaw’s 13F Portfolio: 0.13%
Number of Hedge Fund Holders: 44
Stock Price as of May 25, 2022: $21.94
Cenovus Energy Inc. (NYSE:CVE) is a Canadian crude oil, natural gas, and natural gas liquids, provider. The company has facilities in the United States and Canada in which it produces bitumen and heavy oil and converts them into crude oil, diesel, and other products.
For its fiscal first quarter, Cenovus Energy Inc. (NYSE:CVE) reported C$17.9 billion in revenue and C$0.81 in GAAP EPS, with its revenue marking a 15.4% annual increase but missing analyst estimates. Credit Suisse raised the company’s share price target to C$32 from C$28 in May 2022 and kept an Overweight rating on the shares.
D.E. Shaw’s Q1 2022 stake in Cenovus Energy Inc. (NYSE:CVE) was worth $140 million and it represented 0.13% of the firm’s investment portfolio. Insider Monkey scanned 912 hedge fund holdings for the same quarter to find out that 44 had also bought a stake in the oil company.
Eric W. Mandelblatt’s Soroban Capital Partners is Cenovus Energy Inc. (NYSE:CVE)’s largest investor. It owns an $808 million stake that comes through 48 million shares.
6. Plug Power Inc. (NASDAQ:PLUG)
D.E. Shaw’s Stake Value: $150 million
Percentage of D.E. Shaw’s 13F Portfolio: 0.14%
Number of Hedge Fund Holders: 33
Stock Price as of May 25, 2022: $15.2
Plug Power Inc. (NASDAQ:PLUG) is a hydrogen fuel cell solutions provider based out of Latham, New York, United States. The company primarily targets industries and it provides products such as fuel cells, fuel cell processing, hydrogen storage, generation, and disposal facilities.
Dr. Shaw’s investment firm owned 5.2 million Plug Power Inc. (NASDAQ:PLUG) shares that were worth $150 million and represented 0.14% of its investment portfolio as part of its Q1 2022 investments. During the same time period, 33 of the 912 hedge funds analyzed by Insider Monkey had also invested in the company.
Plug Power Inc. (NASDAQ:PLUG) posted $140 million in revenue and -$0.27 in GAAP EPS for its fiscal Q1 earnings, missing analyst estimates for both. Morgan Stanley kept a $60 price target for the company’s shares in May 2022 as it highlighted that Plug Power Inc. (NASDAQ:PLUG)’s contract for a one gigawatt hydrogen production facility in Denmark alone can provide huge cash inflows.
Plug Power Inc. (NASDAQ:PLUG)’s largest investor after D.E. Shaw is Ken Griffin’s Citadel Investment Group which owns 3.3 million shares that are worth $96 million.
Ford Motor Company (NYSE:F), AMC Entertainment Holdings, Inc. (NYSE:AMC), and The Coca-Cola Company (NYSE:KO) are joined by Plug Power Inc. (NASDAQ:PLUG) in D.E. Shaw’s favorite stocks.
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