5 Hot IPOs That Hedge Funds Couldn’t Ignore

2. Extraction Oil & Gas Inc (NASDAQ:XOG)

Top Hedge Fund Backers: 1. Zimmer Partners (5.48 million shares) 2. Magnetar Capital (5.11 million shares) 3. Luminus Management (4.30 million shares)

Extraction Oil & Gas Inc (NASDAQ:XOG) was the first U.S exploration and production company to have an IPO in over two years, which enticed 24 hedge funds in our database to buy up 16.5% of the company’s shares in their first quarter on sale. Those shares were priced at $19 initially, and later topped out at over $25, but have since slid slightly beneath their IPO price.

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Analysts are bullish on the company’s prospects despite the recent slump in oil prices, which has hurt the stock and opened a great entry point for those who missed out on the IPO. Citi upgraded Extraction Oil & Gas Inc (NASDAQ:XOG) to ‘Buy’ in early March due to shares’ extended weakness, while KLR and SunTrust each have ‘Buy’ ratings on the stock as well and believe the company is poised for tremendous growth. Extraction Oil & Gas Inc (NASDAQ:XOG) anticipates net sales volumes of between 48 and 54 MBoe/d in 2017, with the company planning for a big ramp up in production over the next two quarters.

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