5 Best Stocks Under $50 According to Hedge Funds

2. Capri Holdings Limited (NYSE:CPRI)

Number of Hedge Fund Holders: 46   

Share Price as of September 1: $47.18

Capri Holdings Limited (NYSE:CPRI) makes and sells branded apparel, accessories, and luxury goods. On August 9, the firm posted earnings for the first quarter of 2022, reporting earnings per share of $1.50, beating market estimates by $0.14. The revenue over the period was $1.3 billion, up 8% compared to the revenue over the same period last year and beating estimates by $60 million. The firm said it expected total revenue of approximately $5.85 billion versus consensus estimates of $5.84 billion in 2023. 

On August 11, Barclays analyst Adrienne Yih maintained an Overweight rating on Capri Holdings Limited (NYSE:CPRI) stock and increased the price target to $72 from $66, noting the firm had an underlying brand strength in core markets offsetting weakness in China. 

Among the hedge funds being tracked by Insider Monkey, New York-based investment firm Rima Senvest Management is a leading shareholder in Capri Holdings Limited (NYSE:CPRI), with 7.2 million shares worth more than $299 million.  

In its Q4 2021 investor letter, Alger, an asset management firm, highlighted a few stocks and Capri Holdings Limited (NYSE:CPRI) was one of them. Here is what the fund said:

“Capri Holdings Limited (NYSE:CPRI) is a global fashion luxury group consisting of three brands: Michael Kors, accounting for 72% of fiscal year 2021 sales, Jimmy Choo, accounting for 10% of sales, and Versace, accounting for 18% of sales. The brands cover various fashion categories, including women’s and men’s accessories, footwear, ready-to-wear, wearable technology, watches, jewelry, eyewear and fragrance products. Capri Holdings Limited (NYSE:CPRI) mainly operates within the $70 billion accessories segment of the global luxury market, which is growing 5% to 6% annually. Capri shares outperformed in the last three months of 2021 after the company reported strong results for the fiscal quarter ended September 25. Revenue, margins and earnings per share all beat management’s internal expectations, and the company raised its fiscal year 2022 outlook for all three brands, despite supply chain pressure. Capri Holdings Limited (NYSE:CPRI) also approved a new two-year share repurchase program of up to $1 billion, replacing its existing $500 million program, which had $250 million of availability remaining.”