In this piece, we will take a look at the five best stocks that have recently had their initial public offering. If you want to find out about more stocks, head on over to 12 Best IPO Stocks to Invest In Right Now.
5. Ryan Specialty Holdings, Inc. (NYSE:RYAN)
Number of Hedge Fund Holders: 13
Ryan Specialty Holdings, Inc. (NYSE:RYAN) is an underwriting, product services, administration, and risk management services provider for the insurance brokerage industry. It is headquartered in Chicago, Illinois, the United States.
Ryan Specialty Holdings, Inc. (NYSE:RYAN) listed its shares on the stock market in July 2021 and raised $1.34 billion in proceeds. Since then, the shares have appreciated by 45%. By the end of its second fiscal quarter of 2022, each of the company’s business lines produced double digit annual growth, which in turn contributed to a 27% revenue growth rate.
RBC Capital raised Ryan Specialty Holdings, Inc. (NYSE:RYAN)’s share price target to $47 from $42 in August 2022, as it shared that the firm’s Q2 results saw industry leading growth. It however cautioned that future growth might already be reflected in the stock’s valuation premium. 13 of the 895 hedge funds part of Insider Monkey’s Q2 2022 survey had invested in the company.
Out of these, Stuart J. Zimmer’s Zimmer Partners is Ryan Specialty Holdings, Inc. (NYSE:RYAN)’s largest investor. It owns 5 million shares that are worth $197 million.
Cooper Investors mentioned the company in its Q2 2022 investor letter and outlined that:
“In terms of underlying businesses, the portfolio holdings are going well and largely reported solid numbers during earnings season with positive language around the outlook for 2022. Our insurance broker Ryan Specialty is a stand-out performer, delivering low-double-digit organic revenue growth at the same time as margin expansion – this is a business that benefit from higher interest rates, emerging risks and inflating premiums. While rising rates, supply chain constraints and war in Europe represent a myriad of challenges for many industries, our view is that our management teams are highly experienced focused operators. They are well equipped to deal with these challenges, having shown great resilience and flexibility during many crises, the most recent example (COVID) proving yet again the power of their business models.”
4. Lucid Group, Inc. (NASDAQ:LCID)
Number of Hedge Fund Holders: 16
Lucid Group, Inc. (NASDAQ:LCID) is an American electric car manufacturer that is headquartered in Newark, California. The company is one of the few American electric vehicle companies that have a product available for purchase on the market, and it operates through 20 retail studios in the country.
Even as Lucid Group, Inc. (NASDAQ:LCID) cut its production estimates for the second time at Q2 2022 end, the firm’s strong balance sheet with a cash balance of $4.57 billion will ensure that it will meet its production commitments even though they might take longer than hoped. Its latest quarter also saw the automaker report 37,000 reservations, which was above most predictions and indicated a strong demand for its vehicles. Lucid Group, Inc. (NASDAQ:LCID) listed its shares on the stock market in January 2021, and since then the stock has grown by 55%.
Insider Monkey scanned 895 hedge fund investment portfolios for this year’s second quarter to discover that 16 had bought Lucid Group, Inc. (NASDAQ:LCID)’s shares.
3. Global-e Online Ltd. (NASDAQ:GLBE)
Number of Hedge Fund Holders: 17
Global-e Online Ltd. (NASDAQ:GLBE) is an Israeli company that operates a platform to facilitate companies to directly ship and sell their products to consumers in different countries. It offers its services in Israel, the United States, and the United Kingdom and is headquartered in Petah Tikva, Israel.
True to the notion of a high growth company, Global-e Online Ltd. (NASDAQ:GLBE) is on a strong growth trajectory, after growing its revenues by a staggering 80% in 2021 and projecting 60% growth this year. Consensus estimates believe that the growth story isn’t over yet, with growth rates of 45% and 50% for 2023 and 2024 expected. The firm listed its shares on the stock market in May last year and since then the stock has grown by 14%.
17 out of the 895 hedge fund portfolios profiled by Insider Monkey for this year’s June quarter had held a stake in Global-e Online Ltd. (NASDAQ:GLBE). BofA raised the company’s share price target to $40 from $30 in August 2022, sharing that the firm is one of the best of its kind and its Q2 2022 results were impressive.
Colin Moran’s Abdiel Capital Advisors is Global-e Online Ltd. (NASDAQ:GLBE)’s largest investor. It owns 14 million shares worth $298 million.
2. Prometheus Biosciences, Inc. (NASDAQ:RXDX)
Number of Hedge Fund Holders: 20
Prometheus Biosciences, Inc. (NASDAQ:RXDX) is a biopharmaceutical company that develops several treatments to treat inflammatory bowel disease. The firm’s treatments also target tumors and it is headquartered in San Diego, California, the United States.
Prometheus Biosciences, Inc. (NASDAQ:RXDX) is playing in a $7.4 billion market for colon cancer, and phase one tests of its drugs have already shown positive safety data. The company is also targeting interstitial lung disease with its medicines – a key point since this disease has seen few if any, treatment options over the years. Prometheus Biosciences, Inc. (NASDAQ:RXDX) listed its shares on the public market in March 2021, and so far, the shares have appreciated by 122%.
Insider Monkey profiled 895 hedge funds for their Q2 2022 holdings and discovered that 20 had bought Prometheus Biosciences, Inc. (NASDAQ:RXDX)’s shares. Wells Fargo raised the company’s share price target to $71 from $51 in August 2022, sharing that expected readouts of the company’s drug are very impressive.
Prometheus Biosciences, Inc. (NASDAQ:RXDX)’s largest investor is Bihua Chen’s Cormorant Asset Management which owns 2 million shares that are worth $57 million.
1. ZIM Integrated Shipping Services Ltd. (NYSE:ZIM)
Number of Hedge Fund Holders: 41
ZIM Integrated Shipping Services Ltd. (NYSE:ZIM) is an Israeli container shipment company. The firm provides door to door and port to port services to a variety of entities such as consolidators, freight forwarders, and end users. It is headquartered in Haifa, Israel.
Taking stock of the current global energy crisis and the strong demand for liquefied natural gas (LNG), ZIM Integrated Shipping Services Ltd. (NYSE:ZIM) signed a deal worth $1 billion with the energy giant Shell in August 2022 through which the company will ship LNG from Asia to North America from 2023. It also pays a strong dividend of $6.78 per share for a whopping 78% yield. ZIM Integrated Shipping Services Ltd. (NYSE:ZIM)’s IPO was in January 2021, and its shares have grown in value by 186% since then. Since the IPO, the firm’s total dividend return stands at 340%.
By the end of this year’s June quarter, 41 out of the 895 hedge funds polled by Insider Monkey had bought ZIM Integrated Shipping Services Ltd. (NYSE:ZIM)’s shares.
Out of these, Peter Rathjens, Bruce Clarke, and John Campbell’s Arrowstreet Capital is ZIM Integrated Shipping Services Ltd. (NYSE:ZIM)’s largest investor through a $177 million stake that comes via 3.7 million shares.
Disclosure: None. You can also take a look at 10 Crypto Companies Hit By the Recent Crash and Top 10 Technology Stocks to Buy According to Billionaire Cliff Asness.
