In this article, we discuss the 5 meme stocks Redditors are buying in April. If you want to read about some more meme stocks popular on Reddit, go directly to 10 Meme Stocks Redditors are Buying in April.
5. Sundial Growers Inc. (NASDAQ:SNDL)
Number of Hedge Fund Holders: 8
Sundial Growers Inc. (NASDAQ:SNDL) makes and sells cannabis products. In August last year, the firm was issued a notice by the NASDAQ exchange after the shares remained under $1 at the close of 30 consecutive trading days. Despite a nearly six-month deadline to regain compliance, the firm has failed to meet the targets. However, in February, it announced that the exchange had granted the firm another six months to regain compliance. There are reports that the firm is considering a reverse stock split to meet the minimum requirements.
Sundial Growers Inc. (NASDAQ:SNDL) stock has gained recently after the US House of Representatives cleared a key bill that aims to legalize marijuana at the federal level. A previous version of the bill also cleared the House but was not approved in the Senate.
At the end of the fourth quarter of 2021, 8 hedge funds in the database of Insider Monkey held stakes worth $10 million in Sundial Growers Inc. (NASDAQ:SNDL), compared to 7 the preceding quarter worth $8 million.
Among the hedge funds being tracked by Insider Monkey, New York-based investment firm DE Shaw is a leading shareholder in Sundial Growers Inc. (NASDAQ:SNDL) with 8 million shares worth more than $4.7 million.
4. Blink Charging Co. (NASDAQ:BLNK)
Number of Hedge Fund Holders: 11
Blink Charging Co. (NASDAQ:BLNK) provides electric vehicle charging equipment and related infrastructure. The stock has gained prominence on Reddit based on strong EV demand and the accompanying usage of charging stations. However, the recurring revenue stream for the company still remains below $2 million per quarter, indicating that the supply is far exceeding the demand for EV charging. For most EV charging firms, selling charging stations, instead of charging equipment, on low margins is the only viable option for strong growth.
On March 15, Stifel analyst Stephen Gengaro kept a Hold rating on Blink Charging Co. (NASDAQ:BLNK) stock and lowered the price target to $30 from $39, noting that the cash flow trends for the firm were not positive in the near-term.
At the end of the fourth quarter of 2021, 11 hedge funds in the database of Insider Monkey held stakes worth $8.8 million in Blink Charging Co. (NASDAQ:BLNK), compared to 6 in the previous quarter worth $4.3 million.
Among the hedge funds being tracked by Insider Monkey, Chicago-based investment firm Citadel Investment Group is a leading shareholder in Blink Charging Co. (NASDAQ:BLNK) with 671,600 shares worth more than $17 million.
3. BlackBerry Limited (NYSE:BB)
Number of Hedge Fund Holders: 15
BlackBerry Limited (NYSE:BB) provides security software and related services. On April 7, the company settled a class-action lawsuit from 2013 that claimed that the firm had defrauded shareholders. The shares lost over 2% in value as a result. The lawsuit had claimed that Blackberry had “inflated the success and profitability of the now-discontinued BlackBerry 10 smartphone”. The company agreed to settle these claims for almost $165 million. The company labeled the lawsuit a “distraction” after the settlement.
On April 1, Canaccord analyst T. Michael Walkley maintained a Hold rating on BlackBerry Limited (NYSE:BB) stock with a price target of $7, noting that the fourth quarter earnings of the firm were “in line” with expectations but guidance numbers were “disappointing”.
Among the hedge funds being tracked by Insider Monkey, Canada-based investment firm Fairfax Financial Holdings is a leading shareholder in BlackBerry Limited (NYSE:BB) with 46 million shares worth more than $436 million.
At the end of the fourth quarter of 2021, 15 hedge funds in the database of Insider Monkey held stakes worth $504 million in BlackBerry Limited (NYSE:BB), compared to 20 in the preceding quarter worth $569 million.
2. AMC Entertainment Holdings, Inc. (NYSE:AMC)
Number of Hedge Fund Holders: 17
AMC Entertainment Holdings, Inc. (NYSE:AMC) owns and runs theaters in the US and Europe. In early April, Fox Business reported that the company was seeking to transition to distressed investing as it sought to branch out of the movie business. According to the report, Adam Aron, the CEO of the firm, was reportedly seeking $500 million for the purpose. The stock is one of the most popular “meme” stocks on Reddit and has been one of the top mentioned on the platform since January 2021.
On February 1, Benchmark analyst Mike Hickey maintained a Hold rating on AMC Entertainment Holdings, Inc. (NYSE:AMC) stock without a price target.
At the end of the fourth quarter of 2021, 17 hedge funds in the database of Insider Monkey held stakes worth $328 million in AMC Entertainment Holdings, Inc. (NYSE:AMC), the same as in the preceding quarter worth $252 million.
Among the hedge funds being tracked by Insider Monkey, New York-based investment firm DE Shaw is a leading shareholder in AMC Entertainment Holdings, Inc. (NYSE:AMC) with 4.9 million shares worth more than $135 million.
In its Q3 2021 investor letter, Bronte Capital, an asset management firm, highlighted a few stocks and AMC Entertainment Holdings, Inc. (NYSE:AMC) was one of them. Here is what the fund said:
“AMC Entertainment Holdings, Inc. (NYSE:AMC) was our only material loser in Q4, dropping from $4.71 to $2.12 (-55%). I planned on discussing here why it was worth at least the $10 per share that my recently reduced estimate of fair value claimed, but since then AMC raised more cash against their UK holdings and then the stock took off due to speculative players from reddit.com getting involved, so we sold it all around $14 during the last week of Jan. 2021. This was a modest profit for most clients, but a loss for some others, depending on when the account began, so check your statements to see where you came out. And yes, I recognize it as being a dose of good luck, which I heartily accept from the universe as it seemed somewhat lacking in the portfolio of late. After the sale of AMC Entertainment Holdings, Inc. (NYSE:AMC) in late January 2021, our exposure to the movie theater business is now exclusively in Canada via Cineplex, which has a 75% market share and much less leverage on its balance sheet.”
1. Upstart Holdings, Inc. (NASDAQ:UPST)
Number of Hedge Fund Holders: 20
Upstart Holdings, Inc. (NASDAQ:UPST) owns and runs a cloud-based lending platform. In early March, the stock dropped by more than 14% in a single day after Dave Girouard, the CEO of the firm, sold nearly 133,000 shares in the company. Over the past twelve months, the shares have lost more than 23% in value as inflation climbs and batters growth stocks. However, the mentions of the firm on Reddit have climbed in the meanwhile, leading to renewed retail investor interest.
On March 22, Wedbush Securities analyst David Chiaverini downgraded Upstart Holdings, Inc. (NASDAQ:UPST) stock to Underperform from Neutral and lowered the price target to $75 from $110, noting that the underwriting model of the firm was yet to be battle-tested as a recession looms.
Among the hedge funds being tracked by Insider Monkey, New York-based investment firm Third Point is a leading shareholder in Upstart Holdings, Inc. (NASDAQ:UPST) with 12.4 million shares worth more than $3.9 billion.
At the end of the fourth quarter of 2021, 20 hedge funds in the database of Insider Monkey held stakes worth $1 billion in Upstart Holdings, Inc. (NASDAQ:UPST), compared to 23 in the preceding quarter worth $5 billion.
In its Q4 2021 investor letter, Vulcan Value Partners, an asset management firm, highlighted a few stocks and Upstart Holdings, Inc. (NASDAQ:UPST) was one of them. Here is what the fund said:
“Upstart Holdings, Inc. (NASDAQ:UPST) was another material detractor during the quarter. Upstart is an artificial intelligence (AI) and cloud-based lending platform. Upstart uses over 1600 variables in its AI models. Its lending platform delivers lower default rates, higher approval rates, lower rates for consumers, and higher returns on investment for its bank and institutional clients. As former owners of FICO, we believe Upstart has the potential to be the FICO of the 21st century. Recent stock price volatility has given us an opportunity to follow our investment discipline. During the third quarter of 2021, Upstart’s stock price increased significantly, and we materially reduced our position in the company. Following its most recent earnings release, our value increased but Upstart’s stock price began to decline significantly. With a significantly improved price to value ratio, we added to our position in Upstart Holdings, Inc. (NASDAQ:UPST). We simply took advantage of stock price volatility to manage risk in the portfolio and improve our returns and our prospective returns.”
You can also take a peek at 10 Best Healthcare Dividend Stocks to Buy Now and 10 Dividend Stocks with Over 20 Years of Dividend Increases.
