5 Best Used Car Stocks To Buy Now

3. IAA, Inc. (NYSE:IAA)

Number of Hedge Fund Holders: 36

IAA, Inc. (NYSE:IAA) is an Illinois-based company that operates a digital marketplace connecting vehicle buyers and sellers. The company’s platform markets and sells total loss, damaged, and low-value vehicles for a range of sellers, including insurance companies, dealerships, fleet lease and rental car companies, and charitable organizations. IAA, Inc. (NYSE:IAA) is one of the elite used car stocks to consider. 

On August 10, Baird analyst Craig Kennison maintained an Outperform rating on IAA, Inc. (NYSE:IAA) but lowered the price target on the shares to $46 from $50. The analyst noted that the company posted mixed results and narrowed guidance. Although volume remained weak due to share losses, a strong RPU provided an offset. The analyst forecasts volume to rebound as share patterns stabilize and used car prices normalize.

Among the hedge funds tracked by Insider Monkey, 36 funds reported owning stakes worth $612.8 million in IAA, Inc. (NYSE:IAA) at the end of the second quarter of 2022, compared to 34 funds in the prior quarter worth $664 million. Paul Marshall and Ian Wace’s Marshall Wace LLP is the leading stakeholder of the company, with 2.70 million shares valued at $88.5 million.