In this piece, we will take a look at the ten stocks to invest in under $20 according to Sio Capital. To skip the bottom five stocks in this list, head on over to 5 Stocks to Invest In Under $20 According to Michael Castor’s Sio Capital.
Sio Capital is a hedge fund based out of New York, New York, United States. The firm is headed by its founder Dr. Michael Castor, who has been at its helm of affairs since 2006 after he set the firm up.
Dr. Castor is known for his focus on the healthcare sector. Unlike some of his other peers in the hedge fund industry, who have gained the privilege of becoming Ph.D. doctors, Dr. Castor has a background in clinical medicine. This makes him one of the rare hedge fund executives who have shifted careers from medicine to finance, joining others who have switched from military, teaching, and more to go ahead and run financial firms.
The now hedge fund executive received his undergraduate degree in biomedical engineering from the Tulane University in New Orleans, Louisiana, in 1993. After this, he proceeded to receive his M.D. degree from the Ohio State University’s College of Medicine in 1997. After graduating as a doctor, Dr. Castor spent three years in his field, during which he focused on surgery targeting mostly the head and neck areas.
He entered the financial world in 2000, after securing a role as an investment banking analyst at JP Morgan, a role in which he would spend only one year. After JP Morgan, Dr. Castor went on to work as a research analyst at another renowned firm, Bernstein, where he would stay for the next five years and leave in 2006 to set up Sio Capital.
In line with its founder’s medical background, Sio Capital focuses primarily on the healthcare sector. It has six senior research analysts working for it, who represent a diverse background that ranges from hardcore finance, sell side analysis, management consultancy, marketing, business, and biotechnology. It defines its strategy as being a combination of two different elements. These are low risk and significant upside potential – a combination that allows the company to protect its downside while sifting out companies that according to its belief will perform strongly in the stock market in the future.
Sio Capital’s portfolio was worth $331 million as the fourth quarter of last year came to an end. Some of the top holdings in its investment portfolio are Merck & Co., Inc. (NYSE:MRK), Aveanna Healthcare Holdings Inc. (NASDAQ:AVAH), and Curis, Inc. (NASDAQ:CRIS).
Michael Castor of Sio Capital
Our Methodology
In order to find Sio Capital’s top stocks under $20, we analyzed its filings with the Securities and Exchange Commission for the fourth quarter of last year. After the firms were identified, they were analyzed through their quarterly earnings, analyst reports, investor letters, large shareholdings, and hedge fund sentiment garnered through Insider Monkey’s survey of 924 funds for Q4 2021.
Stocks to Invest in Under $20 According to Michael Castor’s Sio Capital
10. Syros Pharmaceuticals, Inc. (NASDAQ:SYRS)
Sio Capital’s Stake Value: $2.9 million
Percentage of Sio Capital’s 13F Portfolio: 0.88%
Number of Hedge Fund Holders: 9
Stock Price as of May 10, 2022: $0.78
Syros Pharmaceuticals, Inc. (NASDAQ:SYRS) is an American biopharmaceutical company headquartered in Cambridge, Massachusetts. It focuses its efforts on developing treatments for cancers and other diseases that involve genetic abnormalities. These include several types of leukemias and solid tumors.
Dr. Castor’s hedge fund held a $2.9 million stake in Syros Pharmaceuticals, Inc. (NASDAQ:SYRS) as the fourth quarter of last year came to an end. This was in the form of 900,677 shares and it represented 0.88% of the firm’s investment portfolio. Insider Monkey’s Q4 2021 survey of 924 hedge funds revealed that 9 had also invested in the company.
Syros Pharmaceuticals, Inc. (NASDAQ:SYRS) posted $78 million in revenue and -$0.38 in GAAP EPS for its fiscal fourth quarter, beating analyst estimates for both. The revenue beat was impressive as it saw the company surpass Wall Street expectations by a whopping $73 million. Roth Capital’s analyst Zegbeh Jallah expressed bewilderment at the company’s share price in March 2022, as he reiterated his price target of $23 for the firm.
Syros Pharmaceuticals, Inc. (NASDAQ:SYRS)’s largest investor is Srini Akkaraju and Michael Dybbs’s Samsara BioCapital which owns 2.1 million shares that are worth $6.2 million.
Aveanna Healthcare Holdings Inc. (NASDAQ:AVAH), Merck & Co., Inc. (NYSE:MRK), and Curis, Inc. (NASDAQ:CRIS) are met by Syros Pharmaceuticals, Inc. (NASDAQ:SYRS) in the list of Sio Capital’s top stock picks under $20.
9. Viking Therapeutics, Inc. (NASDAQ:VKTX)
Sio Capital’s Stake Value: $3 million
Percentage of Sio Capital’s 13F Portfolio: 0.91%
Number of Hedge Fund Holders: 11
Stock Price as of May 10, 2022: $2.24
Viking Therapeutics, Inc. (NASDAQ:VKTX) is an American company that focuses on developing therapies for diseases involving the hormonal (endocrine) system and metabolism. The firm targets illnesses such as steatohepatitis, complications from surgery, and diabetes. It is headquartered in San Diego, California.
As its fiscal first quarter came to an end, Viking Therapeutics, Inc. (NASDAQ:VKTX) reported -$0.21 in GAAP EPS for the quarter, missing analyst estimates by a hairline. Additionally, the firm’s cash reserves also dropped to $185 million during its previous fiscal year. Roth Capital reduced its price target to $15 from $20 in April 2022, outlining changes to its financial model.
Sio Capital’s Q4 2021 stake in Viking Therapeutics, Inc. (NASDAQ:VKTX) was worth $3 million and it came through the hedge fund holding 660,813 shares. During the same time period, 11 of the 924 hedge funds polled by Insider Monkey had also held a stake in the company.
Peter S. Park’s Park West Asset Management is Viking Therapeutics, Inc. (NASDAQ:VKTX)’s largest investor. It owns 1.6 million shares that are worth $7.4 million.
8. Oyster Point Pharma, Inc. (NASDAQ:OYST)
Sio Capital’s Stake Value: $3.3 million
Percentage of Sio Capital’s 13F Portfolio: 1%
Number of Hedge Fund Holders: 9
Stock Price as of May 10, 2022: $5.17
Oyster Point Pharma, Inc. (NASDAQ:OYST) is an American biotechnology company that focuses on developing commercialized treatments for a variety of diseases such as dry eye disease and neurotrophic keratopathy. The company is headquartered in Princeton, New Jersey.
As part of its Q4 2021 investments, Sio Capital owned 181,857 Oyster Point Pharma, Inc. (NASDAQ:OYST) shares. These were a new addition to the firm’s portfolio, were worth $3.3 million, and represented 1% of the portfolio. Insider Monkey’s December 2021 research of 924 hedge funds revealed that 9 had also invested in the company.
Oyster Point Pharma, Inc. (NASDAQ:OYST) posted $6.5 million in revenue and -$1.61 in non-GAAP EPS for its fiscal fourth quarter, beating analyst revenue estimates and missing them for EPS. Piper Sandler kept a $60 price target for the company in February 2022, outlining that its product profile appears to be favorable.
Oyster Point Pharma, Inc. (NASDAQ:OYST)’s largest shareholder is Steve Cohen’s Point72 Asset Management which owns 2.1 million shares that are worth $38 million.
7. Kezar Life Sciences, Inc. (NASDAQ:KZR)
Sio Capital’s Stake Value: $3.5 million
Percentage of Sio Capital’s 13F Portfolio: 1.07%
Number of Hedge Fund Holders: 22
Stock Price as of May 10, 2022: $5.71
Kezar Life Sciences, Inc. (NASDAQ:KZR) is a biotechnology firm that develops therapies using small molecules to target serious illnesses such as cancer and immune system related disorders. The list of diseases that it targets includes lupus nephritis, lupus erythematosus, and polymyositis. It is based in San Francisco, California.
Kezar Life Sciences, Inc. (NASDAQ:KZR)’s latest fiscal year results saw it post -$1.04 in GAAP EPS alongside possessing $208 million in cash and marketable securities. Wells Fargo reduced its price target to $14 from $19 in May 2022, stating that recent test results influenced the decision.
Mr. Castor’s investment firm owned 213,247 Kezar Life Sciences, Inc. (NASDAQ:KZR) shares during the fourth quarter of last year. These were worth $3.5 million and they represented 1.07% of the firm’s investment portfolio. Insider Monkey’s Q4 2021 survey targeting 924 hedge funds listed down 22 as having invested in the firm.
David Witzke and Michael Gregory’s Avidity Partners Management is Kezar Life Sciences, Inc. (NASDAQ:KZR)’s largest investor. It has a $53 million stake that comes via 3.2 million shares.
6. Vapotherm, Inc. (NYSE:VAPO)
Sio Capital’s Stake Value: $3.7 million
Percentage of Sio Capital’s 13F Portfolio: 1.12%
Number of Hedge Fund Holders: 12
Stock Price as of May 10, 2022: $3.32
Vapotherm, Inc. (NYSE:VAPO) is an American healthcare firm that targets therapies for respiratory disorders and diseases. Its devices are intended to be used by people unable to breathe by delivering oxygenated air to their lungs. The company is headquartered in Exeter, New Hampshire.
Sio Capital’s Q4 2021 stake in Vapotherm, Inc. (NYSE:VAPO) was worth $3.7 million and it came through the firm owning 180,017 shares of the company. During the same time period, 12 of the 924 hedge funds polled by Insider Monkey had bought the company’s shares.
As its fiscal first quarter came to an end, Vapotherm, Inc. (NYSE:VAPO) had managed to rake in $21 million in revenue and -$0.87 in GAAP EPS, in a mixed bag of results that saw it miss EPS estimates but beat them for revenue. Following the results, Canaccord lowered the company’s share price target to $5 from $12 in May 2022, citing risks to the firm’s capital structure.
Vapotherm, Inc. (NYSE:VAPO)’s largest investor is Jonathan Auerbach’s Hound Partners which owns 1.4 million shares that are worth $29 million.
Vapotherm, Inc. (NYSE:VAPO) joins Merck & Co., Inc. (NYSE:MRK), Aveanna Healthcare Holdings Inc. (NASDAQ:AVAH), and Curis, Inc. (NASDAQ:CRIS) in the list of Dr. Castor’s top stock picks.
Click to continue reading and see 5 Stocks to Invest in Under $20 According to Michael Castor’s Sio Capital.
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Disclosure: None. 10 Stocks to Invest in Under $20 According to Michael Castor’s Sio Capital is originally published on Insider Monkey.
