In this article, we will discuss the 5 best stocks to invest in according to Philip Timon’s Owls Nest Partners. If you want to read our detailed analysis of Timon’s history, investment philosophy, and hedge fund performance, go directly to the 10 Best Stocks to Invest In According to Philip Timon’s Owls Nest Partners.
5. Interactive Brokers Group, Inc. (NASDAQ: IBKR)
Timon’s Stake Value: $16,821,000
Percentage of Philip Timon’s 13F Portfolio: 9.81%
Number of Hedge Fund Holders: 31
Interactive Brokers Group, Inc. (NASDAQ: IBKR) is a global automated electronic broker. The company was founded in 1977 and ranks fifth on the list of 10 best stocks to invest in according to Philip Timon’s Owls Nest Partners. Interactive Brokers Group, Inc. (NASDAQ: IBKR) currently has a $27.07 billion market capitalization and was able to deliver a 28.63% return in the past 12 months.
In the second quarter, the company’s revenue was over $650 million, up 24.3% YoY, but missing the estimates by $19.49 million. Interactive Brokers Group, Inc. (NASDAQ: IBKR) also declared a quarterly dividend of $0.10 per share, in line with the previous.
The hedge fund managed by Philip Timon owns 230,300 shares in Interactive Brokers Group, Inc. (NASDAQ: IBKR) worth over $16 million, representing close to 9.81% of their portfolio. Owls Nest Partners has increased its stake in the firm by 12% in the first quarter of 2021. In addition, hedge funds are loading up on Interactive Brokers Group, Inc. (NASDAQ: IBKR), as Insider Monkey’s data shows that 31 hedge funds held stakes in the company as of the end of the first quarter of 2021, up from 28 funds a quarter earlier.
4. Allegiant Travel Company (NASDAQ: ALGT)
Timon’s Stake Value: $17,353,000
Percentage of Philip Timon’s 13F Portfolio: 10.12%
Number of Hedge Fund Holders: 22
Allegiant Travel Company (NASDAQ: ALGT) is a travel company that caters to inhabitants of underserved cities across the United States. The company was founded in 1997 and is placed fourth on the list of 10 best stocks to invest in according to Philip Timon’s Owls Nest Partners. Allegiant Travel Company (NASDAQ: ALGT) shares have returned 56.79% to investors over the course of the past 12 months.
On July 29, BofA analyst Andrew Didora initiated a coverage on Allegiant Travel Company (NASDAQ: ALGT), upgrading the stock to “Buy” from “Neutral” with a $260 price target. On July 28, the company posted earnings for the second quarter of 2021. Allegiant Travel Company (NASDAQ: ALGT) reported earnings per share of $3.46, beating market predictions by $0.51. In addition, the revenue for the second quarter was over $472.4 million, up 254.4% YoY, beating the estimates by $10.72 million.
Philip Timon’s Owls Nest Partners holds 71,100 shares in Allegiant Travel Company (NASDAQ: ALGT), worth over $17 million, representing 10.12% of their portfolio. The hedge fund has trimmed stakes in the firm by 26% in the past few months. At the end of the first quarter of 2021, 22 hedge funds in the database of Insider Monkey held stakes worth $ 402.21 million in Allegiant Travel Company (NASDAQ: ALGT), up from 19 the preceding quarter worth $416.71 million.
Wasatch Global Investors, in its first-quarter 2021 investor letter, mentioned Allegiant Travel Company (NASDAQ: ALGT). Here is what the fund said:
“We recently purchased additional shares of Allegiant Travel Co. (ALGT) not because it’s a play on the economic reopening but because we like the company’s fundamentals and stock price from a risk/reward perspective. Allegiant offers airline flights, hotel bookings, car rentals, travel management and other related services. When the stock price declined in 2020, we performed more research on the company. Although other travelrelated companies were facing dire circumstances, Allegiant wasn’t forced to raise dilutive equity or take government money. Since then, Allegiant has strengthened its relationships with pilots and crews and has positioned itself to benefit from leisure travel—which should accelerate sooner than business travel.”
3. Grand Canyon Education, Inc. (NASDAQ: LOPE)
Timon’s Stake Value: $21,249,000
Percentage of Philip Timon’s 13F Portfolio: 12.4%
Number of Hedge Fund Holders: 24
Grand Canyon Education, Inc. (NASDAQ: LOPE) is a company that provides educational services to schools and universities around the US. The company was founded in 1949 and stands third on the list of 10 best stocks to invest in according to Philip Timon’s Owls Nest Partners. Grand Canyon Education, Inc. (NASDAQ: LOPE) currently has a $3.96 billion market capitalization.
On February 2, Barrington analyst Alexander Paris raised the price target on Grand Canyon to $125 from $110 and reiterated an “Outperform” rating on the shares.
The hedge fund chaired by Philip Timon holds 198,400 shares in Grand Canyon Education, Inc. (NASDAQ: LOPE) worth over $21 million. Owls Nest Partners’ stake in Grand Canyon Education, Inc. (NASDAQ: LOPE) shares decreased by 2% in the first quarter of 2021. Hedge funds are loading up on Grand Canyon Education, Inc. (NASDAQ: LOPE), as Insider Monkey’s data shows that 24 hedge funds held stakes in the company as of the end of the first quarter of 2021, compared to 26 funds a quarter earlier.
Wasatch Global Investors, in its first quarter 2021 investor letter, mentioned Grand Canyon Education, Inc. (NASDAQ: LOPE). Here is what the fund said:
“Grand Canyon Education, Inc. (LOPE)—a Fallen Angel that we have followed for a decade but had not owned until now—was among our notable purchases in the quarter. We believe Grand Canyon is the best-positioned publicly traded for-profit education company due to its strong brand, unique on-campus and online educational environments, and long runway of opportunity.”
2. Progyny, Inc. (NASDAQ: PGNY)
Timon’s Stake Value: $21,314,000
Percentage of Philip Timon’s 13F Portfolio: 12.44%
Number of Hedge Fund Holders: 26
Progyny, Inc. (NASDAQ: PGNY) focuses on fertility and family-building. The company was founded in 2008 and ranks second on the list of 10 best stocks to invest in according to Philip Timon’s Owls Nest Partners. Progyny, Inc. (NASDAQ: PGNY) currently has a $4.2 billion market capitalization and was able to deliver a 54.38% return in the past 12 months.
On August 12, Barclays analyst Sarah James initiated a coverage on Progyny, Inc. (NASDAQ: PGNY) with an “Overweight” rating and $64 price target. The hedge fund managed by Philip Timon owns 478,850 shares in Progyny, Inc. (NASDAQ: PGNY) worth over $21 million, representing 12.44% of their portfolio. Owls Nest Partners decreased its stake in the firm by 14% in the first quarter of 2021. Hedge funds are loading up on Progyny, Inc. (NASDAQ: PGNY), as Insider Monkey’s data shows that 26 hedge funds held stakes in the company as of the end of the first quarter of 2021, up from 24 funds a quarter earlier.
Polen Capital, in its first quarter 2021 investor letter, mentioned Progyny, Inc. (NASDAQ: PGNY). Here is what the fund said:
“Progyny is a fertility benefits manager that works on behalf of self-insured companies and their employees to provide fertility outcomes at a lower cost. Fertility is a somewhat unique benefit in that it is rarely used and relatively expensive with extremely high tail risk cost. Additionally, providing this benefit is becoming increasingly table stakes for human-capital-centric businesses.….”(Click here to see the full text)
1. The Ensign Group, Inc. (NASDAQ: ENSG)
Timon’s Stake Value: $22,461,000
Percentage of Philip Timon’s 13F Portfolio: 13.1%
Number of Hedge Fund Holders: 13
The Ensign Group, Inc. (NASDAQ: ENSG) is a healthcare company that specializes in acute care and various ancillary companies. The company was founded in 1999 and is placed first on the list of 10 best stocks to invest in according to Philip Timon’s Owls Nest Partners. The Ensign Group, Inc. (NASDAQ: ENSG) shares have returned 51.93% to investors over the course of the past 12 months.
On August 2, Sedona Trace Health and Wellness Center, a 119-bed skilled nursing facility in Austin, TX, and Cedar Pointe Health and Wellness Center, a 122-bed skilled nursing facility in Cedar Park, TX, were acquired by The Ensign Group, Inc. (NASDAQ: ENSG). On June 18, The Ensign Group, Inc. (NASDAQ: ENSG) declared a quarterly dividend of $0.0525 per share, in line with the previous.
Philip Timon’s Owls Nest Partners holds 239,350 shares in The Ensign Group, Inc. (NASDAQ: ENSG), worth over $22 million, representing 13.1% of their portfolio. The hedge fund has trimmed stakes in the firm by 28% in the first quarter of 2021. At the end of the first quarter of 2021, 13 hedge funds in the database of Insider Monkey held stakes worth $87.84 million in The Ensign Group, Inc. (NASDAQ: ENSG), down from 19 the preceding quarter worth $114.64 million.
Wasatch Global Investors, in its first-quarter 2021 investor letter, mentioned The Ensign Group, Inc. (NASDAQ: ENSG). Here is what the fund said:
“The second-best contributor was Ensign Group, Inc. (ENSG), which operates facilities offering assisted living, nursing services, rehabilitative care, and physical, occupational and speech therapies. In our view, the company handled the Covid-19 crisis extremely well. Throughout most of the crisis, occupancy levels weren’t down as much as might have been expected. But patients did postpone many treatments. More recently, occupancy levels and treatments have experienced a resurgence. Going forward, we expect impressive comparisons to prior-period financial results and especially strong operating margins that may surprise other investors.”
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