10 Best Tech Stocks To Buy Right Now Under $10

3. Alight Inc. (NYSE:ALIT)

Number of Hedge Fund Holders: 42

Share Price as of September 10: $7.20

Alight Inc. (NYSE:ALIT) is a platform company for HR management focused on employee benefits, payroll, and overall well-being. It is a leading cloud-based human capital technology and services provider for many of the world’s largest organizations and has been an industry leader with 4 decades of experience serving 70% of the Fortune 100 and half of the Fortune 500

The company won new clients like UPS, Wayfair, American Honda, and Adecco Group in Q2. Such expansions have resulted in 42 hedge funds holding long positions in the company as of June 30. The total shares held are 43,395,000, with the highest stake valued at $320,255,100 by Starboard Value LP.

The company reported a 2.36% decline in the year-over-year revenue, generating $787.00 million in total revenue, which was $2.9 million lower than analyst estimates. Still, the annual recurring revenue (~90% of the total revenue) bookings were up 9% in the first half versus the prior year, and have double-digit growth estimates for the second half of 2024.

The revenue outlook for 2024 has been updated due to lower demand for non-recurring projects. However, the core business will continue to grow, boosted by long-term contracts with many large companies. Since the company is trying to improve sales process and client experience to achieve 4-6% annual revenue growth, it’s safe to say that Alight Inc. (NYSE:ALIT) is well-positioned to lead the industry soon.

Greenlight Capital stated the following regarding Alight, Inc. (NYSE:ALIT) in its Q2 2024 investor letter:

“However, it wasn’t all roses. We had three material losers in the long portfolio (and an undisclosed loser in the short portfolio), and deservedly so. Alight, Inc. (NYSE:ALIT) fell from $9.85 to $7.38. While the core business is quite steady with a high degree of recurring revenues, it underperformed slightly in the first quarter. Additionally, the smaller and lumpier parts of the business disappointed for the second quarter in a row. Management’s deteriorating credibility has compounded the issue and the situation has attracted an activist investor. We now expect the company to either change management or sell itself.”