In this article, we discuss the 5 rebounding meme stocks to buy in August. If you want to read about some more rebounding meme stocks to buy in August, go directly to “A Sudden Resurrection”: 10 Rebounding Meme Stocks to Buy in August.
5. SmileDirectClub, Inc. (NASDAQ:SDC)
Number of Hedge Fund Holders: 18
Percentage Increase in Share Price Over Past Month as of August 10: 17%
SmileDirectClub, Inc. (NASDAQ:SDC) operates as an oral care firm. The company posted earnings for the second quarter of 2022 on August 8, reporting losses per share of $0.17, missing market estimates by $0.02. The revenue over the period was $126 million, down more than 26% compared to the revenue over the same period last year and missing market estimates by $15.8 million. The firm said it expected full year revenue of up to $500 million versus estimates of more than $600 million.
On June 17, Stifel analyst Jonathan Block maintained a Hold rating on SmileDirectClub, Inc. (NASDAQ:SDC) stock and lowered the price target to $1 from $2, noting that adjustments had been made to the overall outlook on the firm following reviews of first quarter 10-Q filings.
At the end of the first quarter of 2022, 18 hedge funds in the database of Insider Monkey held stakes worth $27 million in SmileDirectClub, Inc. (NASDAQ:SDC), compared to 16 in the preceding quarter worth $9 million.
4. GameStop Corp. (NYSE:GME)
Number of Hedge Fund Holders: 18
Percentage Increase in Share Price Over Past Month as of August 10: 24%
GameStop Corp. (NYSE:GME) is a Texas-based retailer of entertainment and video game products. On July 20, news platform CoinDesk reported that the NFT marketplace of the video game firm was outpacing the volume of transactions of the NFT market of crypto giant Coinbase. Per the platform, the NFT Marketplace had done over 5,000 ETH in trading volume and $7.2 million in value since the launch on July 11. The marketplace is benefiting from the strong brand name of GameStop among retail traders.
On July 22, Wedbush analyst Michael Pachter maintained an Underperform rating on GameStop Corp. (NYSE:GME) stock and lowered the price target to $7.5 from $30, noting that the shares remain at levels that appear disconnected from the fundamentals.
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 3.6 million shares worth more than $601 million.
In its Q1 2022 investor letter, Bronte Capital, an asset management firm, highlighted a few stocks and GameStop Corp. (NYSE:GME) was one of them. Here is what the fund said:
“GameStop Corp. (NYSE:GME) is a retailer of video games on DVD ROM trying hard (and maybe with some success) to reinvent itself as an alternative computer game distributor. The company raised enough money that bankruptcy is not an immediately likely outcome. (GME would have gone bankrupt except for the willingness of largely retail investors to provide them with much more cash.)
Both have bad financial results. Gamestop’s last financial results were terrible. And both stocks more than doubled very rapidly in March from market caps that were absurd to market caps that are more absurd. We are of course completely aware that they can double again and again after that. Their valuations are absurd but if you double the price they are not twice as absurd. They are just similarly disconnected from reality.
The reason we want to talk about them is that it is indicative of what is going on. GameStop Corp. (NYSE:GME), the most meme of all stocks, announced a possible stock split and the stock, after market that day, traded up 17 percent. We could joke that every child knows that cutting a pizza into more slices yields more pizza. But in this market, not accepting that stock splits add value is a recipe for losing money.”
3. BlackBerry Limited (NYSE:BB)
Number of Hedge Fund Holders: 20
Percentage Increase in Share Price Over Past Month as of August 10: 15%
BlackBerry Limited (NYSE:BB) provides security software and related services. On August 2, the company announced that it would be powering a new sedan developed by Chinese automaker Neta. The latter will use the QNX technology of the former for the sedan. According to the firm, the new tech would provide functional safety, cybersecurity, and reliability of the vehicle’s critical systems while offers users with an engaging, immersive, and digital-first driving experience.
On June 24, TD Securities analyst Daniel Chan maintained a Reduce rating on BlackBerry Limited (NYSE:BB) stock and lowered the price target to $5 from $6.5, noting that the first quarter earnings beat of the firm was of low quality.
At the end of the first quarter of 2022, 20 hedge funds in the database of Insider Monkey held stakes worth $421 million in BlackBerry Limited (NYSE:BB), compared to 15 in the preceding quarter worth $504 million.
2. Beyond Meat, Inc. (NASDAQ:BYND)
Number of Hedge Fund Holders: 23
Percentage Increase in Share Price Over Past Month as of August 10: 23%
Beyond Meat, Inc. (NASDAQ:BYND) makes and sells plant-based meat products. On August 4, the firm posted earnings for the second quarter of 2022, reporting losses per share of $1.53, beating analyst estimates by $0.39. The revenue over the period was $147 million, down more than 1% compared to the revenue over the same period last year and missing market estimates by $2 million. The firm said that full year revenue for 2022 would be in the $470 million to $520 million range against consensus estimates of $561 million.
On August 8, Mizuho analyst John Baumgartner maintained a Neutral rating on Beyond Meat, Inc. (NASDAQ:BYND) stock and lowered the price target to $27 from $21, noting that the firm missed market estimates on earnings for the second quarter.
Among the hedge funds being tracked by Insider Monkey, Chicago-based investment firm Citadel Investment Group is a leading shareholder in Beyond Meat, Inc. (NASDAQ:BYND), with 2.2 million shares worth more than $107 million.
In its Q1 2022 investor letter, Horos Asset Management, an asset management firm, highlighted a few stocks and Beyond Meat, Inc. (NASDAQ:BYND) was one of them. Here is what the fund said:
“What about the other asset class that has attracted the most attention from the investment community in recent times? Beyond Meat, Inc. (NASDAQ:BYND) is the other company whose valuations we did not understand and whose share price has also declined drastically in the last year and a half.”
1. Upstart Holdings, Inc. (NASDAQ:UPST)
Number of Hedge Fund Holders: 25
Percentage Increase in Share Price Over Past Month as of August 10: 5%
Upstart Holdings, Inc. (NASDAQ:UPST) owns and runs a cloud-based lending platform. The company posted earnings for the second quarter of 2022 on August 8, reporting earnings per share of $0.01, missing market estimates by $0.07. The revenue over the period was $228 million, up more than 17% compared to the revenue over the same period last year and missing market estimates by $7 million. The firm said it expected third quarter revenue of up to $246 million.
On August 9, Stephens analyst Vincent Caintic maintained an Underweight rating on Upstart Holdings, Inc. (NASDAQ:UPST) stock and lowered the price target to $23 from $28, noting that the third quarter revenue guidance of the firm did not seem credible.
At the end of the first quarter of 2022, 25 hedge funds in the database of Insider Monkey held stakes worth $100 million in Upstart Holdings, Inc. (NASDAQ:UPST), compared to 20 in the preceding quarter worth $1.3 billion.
In its Q1 2022 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) is an artificial intelligence (AI) and cloud-based lending platform. Upstart’s stock price has been very volatile, but its value has grown steadily. Last year, the company grew its revenue by over 250% organically, which materially exceeded our expectations. In addition, the company continues to generate robust free cash flow and is launching new products to expand its business. Upstart’s value has increased consistently since we first purchased it. Following our discipline, we have added to our position when its stock price has declined and its price to value ratio has improved, and we have reduced our stake when its stock price has risen faster than its value.”
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