In this article, we discuss the 5 pump and dump stocks hedge funds like. If you want to read our detailed analysis of these stocks, go directly to the 10 Pump and Dump Stocks Hedge Funds Like.
5. Vapotherm, Inc. (NYSE:VAPO)
Number of Hedge Fund Holders: 9
52-Week Price Range ($): 0.46 – 24.23
Vapotherm, Inc. (NYSE:VAPO) is a medical technology company that focuses on the development and commercialization of proprietary high-velocity therapy products used to treat patients of various ages suffering from respiratory distress in the United States and internationally. On July 28, Vapotherm moved all of its manufacturing operations from Exeter to Mexico. On November 2, Vapotherm posted earnings for the third quarter of 2022, reporting losses per share of $0.98, missing market estimates by $0.20. The revenue over the period was $13.5 million, a low 64.6% compared to the revenue over the same period last year and missing market estimates by $3.02 million.
On November 3, investment advisory Piper Sandler maintained an Underweight rating on Vapotherm, Inc. (NYSE:VAPO) stock and lowered the price target to $1 from $2. Analyst Jason Bednar issued the ratings update.
Among the hedge funds being tracked by Insider Monkey, New York-based investment firm Millennium Management is a leading shareholder in Vapotherm, Inc. (NYSE:VAPO) with 1.3 million shares worth more than $2.1 million.
4. UWM Holdings Corporation (NYSE:UWMC)
Number of Hedge Fund Holders: 17
52-Week Price Range ($): 2.84 – 7.16
UWM Holdings Corporation (NYSE:UWMC) engages in the residential mortgage lending business in the United States. On November 4, UWM Holdings Corporation posted earnings for the third quarter of 2022, reporting earnings per share of $0.16, beating market estimates by $0.18. The revenue over the period was $684.17 million, down 0.9% compared to the revenue over the same period last year and beating market estimates by $328.48 million.
On October 17, Barclays analyst Mark DeVries maintained an Equal Weight rating on UWM Holdings Corporation (NYSE:UWMC) stock and lowered the price target to $2.50 from $4, noting that near-term pressure on origination volumes was well understood, but the price target was dropped after taking a closer look at potential downside to 2023 origination volumes.
At the end of the third quarter of 2022, 17 hedge funds in the database of Insider Monkey held stakes worth $13.4 million in AMC Entertainment Holdings, Inc. (NYSE:AMC), compared to 15 in the preceding quarter worth $14.6 million.
3. Virgin Galactic Holdings, Inc. (NYSE:SPCE)
Number of Hedge Fund Holders: 12
52-Week Price Range ($): 4.11 – 16.56
Virgin Galactic Holdings, Inc. (NYSE:SPCE) focuses on the development, manufacture, and operation of spaceships and related technologies for conducting commercial human spaceflight and flying commercial research and development payloads into space. On November 3, Virgin Galactic Holdings revealed that it has agreed with Axiom Space, a commercial space company, to support microgravity research and training missions. The company will prepare an Axiom Space astronaut for an upcoming trip to orbit.
On November 7, Jefferies analyst Greg Konrad maintained a Buy rating on Virgin Galactic Holdings, Inc. (NYSE:SPCE) stock and lowered the target to $11 from $14, noting after the third quarter results, schedules have stabilized with plans for the first commercial spaceflight holding steady at second quarter 2023.
At the end of the third quarter of 2022, 12 hedge funds in the database of Insider Monkey held stakes worth $18.4 million in Virgin Galactic Holdings, Inc. (NYSE:SPCE), compared to 15 in the preceding quarter worth $43 million.
2. GameStop Corp. (NYSE:GME)
Number of Hedge Fund Holders: 13
52-Week Price Range ($): 19.40 – 50.03
GameStop Corp. (NYSE:GME) is a specialty retailer that provides games and entertainment products through its e-commerce properties and various stores in the United States, Canada, Australia, and Europe.
Among the hedge funds being tracked by Insider Monkey, Chicago-based investment firm Citadel Investment Group is a leading shareholder in GameStop Corp. (NYSE:GME) with 5.3 million shares worth more than $132 million.
In its Q2 2022 investor letter, Bireme Capital, an asset management firm, highlighted a few stocks and GameStop Corp. (NYSE:GME) was one of them. Here is what the fund said:
“Amazingly, GameStop Corp. (NYSE:GME) is one of our only short positions to not fall in 2022. The stock trades at an $11.5b market cap, exceeding its pre-pandemic peak by billions of dollars. This is even though revenue is down 30% from the peak, gross margins are down 1500 bps, and the company has generated a negative free cash outflow of $700m in the last four quarters (we had to double-check that number because it is so high).
Wall Street has consistently revised downward their estimates of Gamestop’s profitability, making its stock price stability in 2022 even more perplexing. Analysts currently estimate an EBITDA loss of around $400m, markedly worse than their estimates as of 2/3/22 of a loss of $60m. Their recently launched NFT marketplace will do nothing to fix their core business and comes about a year too late to be relevant in the NFT space. Instead, we see this as another example of a meme stock company hoping it can ape its way into a new business model, utilizing the popularity of the stock to drive new lines of business. We are not optimistic and think the $11.5b market cap drastically overestimates the capability of Gamestop to pivot into something more profitable. We find it unlikely that Gamestop books a GAAP profit ever again.”
1. AMC Entertainment Holdings, Inc. (NYSE:AMC)
Number of Hedge Fund Holders: 17
52-Week Price Range ($): 5.05 – 34.94
AMC Entertainment Holdings, Inc. (NYSE:AMC) engages in the theatrical exhibition business. On November 7, AMC Entertainment stated that it plans to launch Zoom Rooms at movie theaters in up to 17 US cities serving businesses with in-person events and meetings. The partnership with Zoom will begin in 2023.
On November 6, Citi analyst Jason Bazinet maintained a Sell rating on AMC Entertainment Holdings, Inc. (NYSE:AMA) stock and lowered the price target to $1.20 from $3.13, highlighting that the estimates are updated to reflect the latest US box office trends as well as latest debt refinancing.
At the end of the second quarter of 2022, 17 hedge funds in the database of Insider Monkey held stakes worth $21.98 million in AMC Entertainment Holdings, Inc. (NYSE:AMC), compared to 18 in the preceding quarter worth $120.6 million.
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