In this piece, we will look at the ten stocks under $30 to buy today according to billionaire Steven Cohen. If you want to take a look at the top five stocks in this list, then head over to 5 Stocks Under $30 to Buy Today According to Billionaire Steven Cohen.
The recent bloodbath in major stock market indexes has taken a lot of segments by surprise. The American economy is reeling not only from the after effects of the worst pandemic in modern history but also from the Federal Reserve reining in some of the emergency measures that it took to keep the economy up and running.
As a result, markets are down and there is a sentiment of doom and gloom everywhere. However, as the age old adage goes, ‘buy low, sell high’, the time is right to take a look at what some of the largest hedge funds in the world are doing when it comes to investing.
One of these hedge funds is Point72 Asset Management LP, which is a fund headquartered in Stamford, Connecticut, United States. Point72 is one of the most well known funds on Wall Street, and it is headed by the billionaire Steven Cohen who is also known for owning the sports team New York Mets.
These days, Mr. Cohen’s hedge fund is in the news for its attempts to shake up the Mets. The Wall Street Journal was astute enough to scan through the fund’s employees’ LinkedIn pages to discover that they are also working with the baseball team to overhaul its approaches towards managing data analytics and technology – two areas that Point72 is intimately familiar with due to its presence on Wall Street.
The recent economic downturn has also influenced the firm’s trading strategies. Previously known for making risky bets on highly volatile stocks, it looks like Point72’s risk appetite is not the same after facing multiple economic downturns. Fresh SEC filings made by the fund have shown that it is now focusing its efforts on investing in safer stocks with high yields such as property developers and oil and gas production.
Overall, the fund engages in both long and short stock buying and selling. In the financial world, a long position refers to buying shares of a company that might be undervalued on a stock market when compared to its balance sheet fundamentals. This allows the investor to hold the stock for a ‘long’ time period and let it appreciate to reap returns. On the contrary, a short strategy involves borrowing and selling the shares on the market with the hope that they will drop in value.
Point72 Asset Management’s portfolio was worth $25 billion as the first quarter of this year came to an end. Some of its well known holdings are Amazon.com, Inc. (NASDAQ:AMZN), Visa Inc. (NYSE:V), and Uber Technologies, Inc. (NYSE:UBER).
Our Methodology
In order to pick out the cheap stocks on Point72’s radar, we scanned the hundreds of positions present in its investment portfolio for the first quarter of this year. This enabled us to sift out the top ten companies, which were then studied through their analyst coverage, investor letters, earnings, large holdings, and hedge fund sentiment generated through Insider Monkey’s survey of 912 funds for Q1 2022.
10. JFrog Ltd. (NASDAQ:FROG)
Point72 Asset Management’s Holdings: $44 million
Percentage of Point72 Asset Management’s Portfolio: 0.17%
Number of Hedge Fund Holders: 21
Share price on May 27, 2022: $18.49
JFrog Ltd. (NASDAQ:FROG) is an American technology company that is based out of Sunnyvale, California. It focuses on providing a development and operations platform to allow companies to manage their software and workflows. These also cover several organizational areas such as supply chains and internet of things (IoT) work fleets.
Steven Cohen’s Point72 Asset Management held 1.6 million JFrog Ltd. (NASDAQ:FROG) shares as the first quarter of this year ended, allowing it to hold a $44 million stake in the company. For the same time period, 21 of the 912 hedge fund holdings analyzed by Insider Monkey had also contained the company’s shares.
JFrog Ltd. (NASDAQ:FROG) raked in $63 million in revenue and $0 in EPS during its fiscal Q1, posting strong results that surpassed Wall Street estimates for both. Piper Sandler lowered its price target to $20 from $24 in May 2022, stating that it is still on the road to development.
Ken Griffin’s Citadel Investment Group is JFrog Ltd. (NASDAQ:FROG)’s largest investor. It owns a $52 million stake in the company through 1.9 million shares.
Along with Visa Inc. (NYSE:V), Amazon.com, Inc. (NASDAQ:AMZN), and Uber Technologies, Inc. (NYSE:UBER), JFrog Ltd. (NASDAQ:FROG) is a favorite Steven Cohen stock.
9. Insmed Incorporated (NASDAQ:INSM)
Point72 Asset Management’s Holdings: $55 million
Percentage of Point72 Asset Management’s Portfolio: 0.22%
Number of Hedge Fund Holders: 27
Share price on May 27, 2022: $19.27
Insmed Incorporated (NASDAQ:INSM) is a biotechnology company that focuses on developing treatments for various diseases involving the lungs. The firm is headquartered in Bridgewater, New Jersey, United States. Its treatments cover several diseases such as those caused by bacteria and involving the lung’s air sacs.
Point72 Asset Management owned 2.3 million Insmed Incorporated (NASDAQ:INSM) shares during this year’s first quarter for a $55 million stake that represented 0.22% of its investment portfolio. During the same time period, 27 of the 912 hedge funds profiled by Insider Monkey had also invested in the company.
Insmed Incorporated (NASDAQ:INSM) reported $53 million in revenue and -$0.80 in GAAP EPS for its first fiscal quarter, which saw it beat analyst EPS estimates but miss them for revenue. The company hired a new chief commercial officer in May 2022, with the intent to focus on a drug line for maximizing profits.
Insmed Incorporated (NASDAQ:INSM)’s largest investor is William Leland Edwards’s Palo Alto Investors which owns 5.8 million shares that are worth $138 million.
8. uniQure N.V. (NASDAQ:QURE)
Point72 Asset Management’s Holdings: $58 million
Percentage of Point72 Asset Management’s Portfolio: 0.23%
Number of Hedge Fund Holders: 21
Share price on May 27, 2022: $14.24
uniQure N.V. (NASDAQ:QURE) is a Dutch biotechnology firm that is headquartered in Amsterdam. The firm develops treatments for genetic disorders and other diseases such as hemophilia B, Huntington’s disease, Parkinson’s disease, and Alzheimer’s disease among others.
As part of its fiscal first quarter earnings, uniQure N.V. (NASDAQ:QURE) brought in $1.7 million in revenue and -$1 in GAAP EPS, missing analyst estimates for both metrics. Stifel lowered its price target to $37 from $66 in April 2022, outlining that problems with a treatment affected the firm’s valuation model.
Mr. Cohen’s hedge fund held a $58 million stake in uniQure N.V. (NASDAQ:QURE) as part of its portfolio for 2022’s January quarter, making it the company’s largest investor. This came through the firm owning 3.2 million shares of the company, and the stake represented 0.23% of Point72Asset Management’s investment portfolio. Insider Monkey’s Q1 2022 research covering 912 hedge funds revealed that 21 had also bought the company’s shares.
Wilmot B. Harkey and Daniel Mack’s Nantahala Capital Management is uniQure N.V. (NASDAQ:QURE)’s second largest investor via a $50 million stake through owning 2.8 million shares.
7. PagSeguro Digital Ltd. (NYSE:PAGS)
Point72 Asset Management’s Holdings: $60 million
Percentage of Point72 Asset Management’s Portfolio: 0.23%
Number of Hedge Fund Holders: 27
Share price on May 27, 2022: $14.71
PagSeguro Digital Ltd. (NYSE:PAGS) is a financial technology solutions and services provider that is headquartered in Sao Paulo, Brazil. Its customers include consumers, small and middle size companies, and individual businessmen.
By the end of Q1 2022, Point72 Asset Management held on to a $60 million investment in PagSeguro Digital Ltd. (NYSE:PAGS) by owning 3 million shares of the company. Insider Monkey scanned 912 hedge fund portfolios for the same time period to discover that 27 had owned a stake in the fintech firm.
PagSeguro Digital Ltd. (NYSE:PAGS) raked in R$3 billion in revenue and R$1.28 in non-GAAP EPS for its fiscal Q4, with its revenue marking an impressive 55% annual growth. Susquehanna lowered its price target to $26 from $38 in May 2022, outlining multiple concerns such as profitability and the market environment.
PagSeguro Digital Ltd. (NYSE:PAGS)’s largest investor is Daniel Patrick Gibson’s Sylebra Capital Management which owns 9.8 million shares that are worth $198 million.
6. Opendoor Technologies Inc. (NASDAQ:OPEN)
Point72 Asset Management’s Holdings: $62 million
Percentage of Point72 Asset Management’s Portfolio: 0.24%
Number of Hedge Fund Holders: 36
Share price on May 27, 2022: $6.52
Opendoor Technologies Inc. (NASDAQ:OPEN) is a technology company that targets the retail sector by providing a platform that connects prospective home buyers with those willing to sell one. The company is headquartered in Tempe, Arizona, United States.
As part of its first fiscal quarter, Opendoor Technologies Inc. (NASDAQ:OPEN) brought in $5.2 billion in revenue and $0.04 in GAAP EPS, for a strong set of results that topped analyst estimates for both metrics. BTIG set a $15 price target for the company in March 2022, sharing that it believes strong demand for the company’s shares to materialize in the market.
Mr. Cohen’s hedge fund owned 7.2 million Opendoor Technologies Inc. (NASDAQ:OPEN) shares by the end of this year’s first quarter for a $62 million stake representing 0.24% of its investment portfolio. Similarly, 36 of the 912 hedge funds profiled by Insider Monkey had also invested in the company.
Daniel Patrick Gibson’s Sylebra Capital Management is Opendoor Technologies Inc. (NASDAQ:OPEN)’s largest investor. It owns 24 million shares that are worth $214 million.
Opendoor Technologies Inc. (NASDAQ:OPEN) is a part of Point72 Asset Management’s Q1 2022 investment portfolio, joining other companies such as Amazon.com, Inc. (NASDAQ:AMZN), Visa Inc. (NYSE:V), and Uber Technologies, Inc. (NYSE:UBER).
Click to continue reading and see 5 Stocks Under $30 to Buy Today According to Billionaire Steven Cohen.
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Disclosure: None. 10 Stocks Under $30 to Buy Today According to Billionaire Steven Cohen is originally published on Insider Monkey.
