5 Best Cheap Tech Stocks to Buy According to Mario Gabelli

1. Diebold Nixdorf, Incorporated (NYSE: DBD)

Number of hedge fund holders: 19

Diebold Nixdorf, Incorporated (NYSE: DBD) is an Ohio-based technology company that specializes in financial services. It was founded in 1859 and is placed first on our list of 10 best cheap tech stocks to buy according to Mario Gabelli. Diebold stock has returned more than 183% over the past year. GAMCO Investors owns 3.7 million shares in the company that are worth over $53 million, representing 0.46% of their portfolio. The hedge fund has trimmed their holdings in the firm by 9% over the past few months. 

In earnings results for the first three months of 2021, posted on May 10, Diebold Nixdorf, Incorporated (NYSE: DBD) reported earnings per share of $0.29, beating market estimates by $0.09. The revenue for the first quarter of 2021 was over $943 million. 

Out of the hedge funds being tracked by Insider Monkey, California-based firm Beach Point Capital Management is a leading shareholder in Diebold Nixdorf, Incorporated (NYSE: DBD) with 3.4 million shares worth more than $48 million. 

In its Q4 2020 investor letter, Roubaix Capital LLC, an asset management firm, highlighted a few stocks and Diebold Nixdorf, Incorporated (NYSE: DBD) was one of them. Here is what the fund said:

“The largest detractor in the short portfolio during the fourth quarter was Diebold Nixdorf (DBD). The company’s primary business is selling automated teller machines to banks. We view the cash ecosystem as a structural share loser and several companies in this ecosystem are on our short focus list. While electronic payments continue to consistently take share, and while there was some concern about using paper money during the health crisis, DBD was able to post reasonable results. The stock has carried a low valuation as many stocks do when they have secular pressure. This low valuation allowed the stock to rally alongside the market in Q4 and we exited on our risk discipline. We will continue to monitor this stock and others in this ecosystem for opportunities to re-short when the risk-reward is more favorable.”

You can also take a peek at 10 Blue Chip Dividend Stocks Hedge Funds Are Buying and 14 Best European Dividend Stocks To Buy.

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