In this article, we discuss the 10 cheap growth stocks to buy according to billionaire Steve Cohen. If you want to skip our detailed analysis of these stocks, go directly to the 5 Cheap Growth Stocks to Buy According to Billionaire Steve Cohen.
Steve Cohen manages Point72 Asset Management, a $23 billion hedge fund firm that started handling outside capital in 2018. Before opening Point72 Asset Management to the public, Cohen spent over 20 years managing one of the most successful hedge fund firms in history, SAC Capital, which was closed in 2016.
According to Forbes, the Point72 Asset Management CEO and founder has a personal net worth of $15.9 billion as of December 13.
Based on the Q3 13F filings tracked by Insider Monkey, Point72 Asset Management’s portfolio is heavily investing in the sectors of healthcare, technology, financials, and services. Some of the biggest holdings in the portfolio of Point72 Asset Management at the end of September included Uber Technologies, Inc. (NYSE:UBER), Meta Platforms, Inc. (NASDAQ:FB), salesforce.com, inc. (NYSE:CRM), and Microsoft Corporation (NASDAQ:MSFT).
One of the high-growth sectors Cohen is investing in is the crypto market. In September, the billionaire investor made a personal bet on a private crypto-trading firm Radkl. Steve Cohen also joined the board of directors of Recur, an NFT startup, after participating in the company’s $50 million Series A round. The hedge fund manager also led a $14 million investment round for 24 Exchange, a Bermuda-based cryptocurrency and foreign exchange trading platform, in early December. Between June and September this year, Steve Cohen’s fund has invested in some crypto stocks including Mogo Inc. (NASDAQ:MOGO) and Hut 8 Mining Corp. (NASDAQ:HUT).
In this article, we will focus on the cheap growth stocks in Steve Cohen’s portfolio.
Steven Cohen of Point72 Asset Management
Our Methodology
The stocks listed below were chosen from Point72 Asset Management’s investment portfolio for the third quarter. These companies are operating in high-growth industries such as biotech, 5G, cryptocurrency, and electric vehicles. The hedge fund sentiment around each stock was calculated using the data of 867 hedge funds tracked by Insider Monkey.
We picked growth stocks included in Steve Cohen’s portfolio that are under $20. The share price of each stock, as of December 13, is mentioned alongside other details for further clarity.
Let’s now take a look at the 10 cheap growth stocks to buy according to billionaire Steve Cohen.
Cheap Growth Stocks to Buy According to Billionaire Steve Cohen
10. ImmunoGen, Inc. (NASDAQ:IMGN)
Share Price as of December 13: $6.65
Number of Hedge Fund Holders: 26
One of the cheap growth stocks to buy according to Steve Cohen is ImmunoGen, Inc. (NASDAQ:IMGN), a clinical-stage biotechnology firm that develops antibody-drug conjugate cancer therapies. Point72 Asset Management holds 714,700 shares of ImmunoGen, Inc. (NASDAQ:IMGN) worth $4.05 million, accounting for 0.01% of the firm’s total Q3 investments.
ImmunoGen, Inc. (NASDAQ:IMGN) stock was up about 17% by the end of November following the company’s promising clinical trial results for mirvetuximab, an experimental ovarian cancer therapy. The Massachusetts-based biotech firm plans to seek approval from the FDA for the cancer drug in Q1 2022. According to Jefferies analyst Kelly Shi, the positive clinical data for mirvetuximab supports ImmunoGen, Inc.’s (NASDAQ:IMGN) MIRASOL potential approval which is anticipated in the third quarter of 2022. On December 1, Shi upgraded ImmunoGen, Inc. (NASDAQ:IMGN) to Buy from Hold rating and increased his price target for the stock to $12 from $7.
At the end of the third quarter, 26 hedge funds in the database of Insider Monkey were bullish on ImmunoGen, Inc. (NASDAQ:IMGN). The total worth of this stake is $363 million.
Along with Uber Technologies, Inc. (NYSE:UBER), Meta Platforms, Inc. (NASDAQ:FB), salesforce.com, inc. (NYSE:CRM), and Microsoft Corporation (NASDAQ:MSFT), ImmunoGen, Inc. (NASDAQ:IMGN) is also a good growth stock investment, according to market analysts.
9. EVgo, Inc. (NASDAQ:EVGO)
Share Price as of December 13: $12.06
Number of Hedge Fund Holders: 19
Steve Cohen snapped up 303,800 shares of EVgo, Inc. (NASDAQ:EVGO) worth $2.5 million in the third quarter of 2021. The company represents 0.01% of Point72 Asset Management’s portfolio at the end of the September quarter. The California-based company sells EV charging stations in 35 states in the US. EVgo, Inc. (NASDAQ:EVGO) recently held its IPO in July raising a $2.6 billion valuation.
JP Morgan analyst Bill Peterson assigned an Overweight rating to EVgo, Inc. (NASDAQ:EVGO), the largest public EV charging network provider in the United States, with a price target of $20 per share. The analyst sees a positive outlook for the EV company’s revenue growth as a result of rapid fleet adoption. Following this favorable rating, EVgo, Inc. (NASDAQ:EVGO) stock rose 12.2% in premarket trading on December 9.
Covalis Capital is the largest shareholder of EVgo, Inc. (NASDAQ:EVGO) as of the end of the September quarter. The London-based investment firm holds 1.19 million shares of the EV stock worth $9.7 million. Overall, 19 hedge funds out of 867 tracked by Insider Monkey were long EVgo, Inc. (NASDAQ:EVGO) in the third quarter.
8. Proterra Inc. (NASDAQ:PTRA)
Share Price as of December 13: $9.28
Number of Hedge Fund Holders: 20
Another EV stock in Steve Cohen’s portfolio is Proterra Inc. (NASDAQ:PTRA), a California-based company that sells battery systems, electrification solutions, and EV charging solutions to commercial vehicle OEM firms in the US. In the third quarter of 2021, Point72 Asset Management increased its stake in the company by 144%, accounting for 0.02% of the fund’s total portfolio. The fund has a $5.12 million position in Proterra Inc. (NASDAQ:PTRA).
The EV stock was among the gainers in the second week of December as Wall Street analysts flared talks about Biden’s infrastructure package, which will be a significant driver for several EV companies. Shares of Proterra Inc. (NASDAQ:PTRA) rose 10.2% on December 7.
The company’s revenue in the third quarter came in at $62 million, up 30% year over year, and beat estimates by $1.12 million. As the company appears to be on track with Q4 revenue targets, Barclays analyst Brian Johnson increased his price target for Proterra Inc. (NASDAQ:PTRA) to $11 from $10 while maintaining an Equal Weight rating.
Additionally, in Q3 2021, Proterra Inc. (NASDAQ:PTRA) deployed 52 electric buses, up from 33 the year before, and supplied battery systems for 78 vehicles, up from 32 a year ago.
Between June and September, 20 hedge funds in the database of Insider Monkey held stakes worth $124 million in Proterra Inc. (NASDAQ:PTRA), compared to 23 in the second quarter worth $338 million.
Just like Uber Technologies, Inc. (NYSE:UBER), Meta Platforms, Inc. (NASDAQ:FB), salesforce.com, inc. (NYSE:CRM), and Microsoft Corporation (NASDAQ:MSFT), Proterra Inc. (NASDAQ:PTRA) is one of the stocks gaining popularity among growth investors.
7. Chimerix, Inc. (NASDAQ:CMRX)
Share Price as of December 13: $6.10
Number of Hedge Fund Holders: 21
Chimerix, Inc. (NASDAQ:CMRX), one of the cheap growth stocks in Steve Cohen’s portfolio, is a biopharmaceutical company that accounts for 0.11% of Point72 Asset Management’s total holdings as of the end of the September quarter. Cohen owned 4.15 million shares of the biotech company worth $25.6 million. The fund increased its stake in the company by 31% in Q3.
Insider Monkey’s data shows that 21 elite hedge funds held stakes in Chimerix, Inc. (NASDAQ:CMRX) at the end of the third quarter, up from 19 funds a quarter earlier.
Chimerix, Inc. (NASDAQ:CMRX) is best known for Tembexa, an FDA-approved smallpox antiviral treatment. Following the announcement of a potential government contract to purchase its smallpox drugs, the biotech stock rose 7.7% on November 30.
The North Carolina-based pharmaceutical company is currently working on a number of cancer drugs. Chimerix, Inc. (NASDAQ:CMRX) recently reported positive clinical data for ONC201, a drug for cancer tumors. The cancer drug was recently granted FDA Fast Track Designation, and Chimerix, Inc. (NASDAQ:CMRX) is scheduled to meet with the FDA in 2022 for further evaluation.
6. Mogo Inc. (NASDAQ:MOGO)
Share Price as of December 13: $3.44
Number of Hedge Fund Holders: 8
Steve Cohen is the largest shareholder of Mogo Inc. (NASDAQ:MOGO), a Canadian fintech company. The hedge fund manager owned 1.7 million shares of the company worth $7.45 million as of the third quarter of 2021. Cohen slashed his position in the fintech company by 5% but Mogo Inc. (NASDAQ:MOGO) still represents 0.03% of Point72 Asset Management’s total fund as of the end of September. Overall, 8 hedge funds reported owning stakes in the Vancouver-based company at the end of September 2021.
Mogo Inc. (NASDAQ:MOGO) runs a digital financial platform that has users internationally. Aside from providing mortgage, personal loans, and other financial services, the Vancouver-based fintech company also allows clients to trade bitcoin on its digital platform. Mogo Inc. (NASDAQ:MOGO) has been growing its digital assets and investments in gaming, metaverse, and cryptocurrency to the tune of $150 million by end of Q3.
As of the third quarter, Mogo Inc. (NASDAQ:MOGO) had 1.8 million members internationally, up from 1.1 million a year ago. The company’s revenue in the period increased 58% year over year to $12.4 million.
Mark Palmer of BTIG on December 9 reiterated a Buy rating on Mogo Inc. (NASDAQ:MOGO) with a price target of $13.
In addition to Uber Technologies, Inc. (NYSE:UBER), Meta Platforms, Inc. (NASDAQ:FB), salesforce.com, inc. (NYSE:CRM), and Microsoft Corporation (NASDAQ:MSFT), Mogo Inc. (NASDAQ:MOGO) is one of the stocks to include in a growth portfolio, according to market analysts.
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Disclosure: None. 10 Cheap Growth Stocks to Buy According to Billionaire Steve Cohen is originally published on Insider Monkey.
