In this article, we discuss the 5 small-cap stocks to buy according to billionaire Steve Cohen. If you want to read our detailed analysis of these stocks, go directly to the 10 Small-Cap Stocks to Buy According to Billionaire Steve Cohen.
5. JFrog Ltd. (NASDAQ:FROG)
Number of Hedge Fund Holders: 20
Market Cap as of January 9: $2.7 billion
JFrog Ltd. (NASDAQ:FROG) provides a DevOps platform that assists clients with software release and update management. The company’s products and services are integrated into different platforms such as AWS, Slack, Netflix, and Google.
The tech company’s revenue in the third quarter was $53.7 million, a 38% increase year over year, and beat estimates by $1.2 million. During the third quarter, JFrog Ltd. (NASDAQ:FROG) saw a 49% increase in customers with more than $100,000 ARR to 466 and a 56% increase in customers with more than $1 million ARR to 14 customers.
Between June and September, Point72 Asset Management held 559,443 shares of JFrog Ltd. (NASDAQ:FROG). Similarly, a total of 20 hedge funds reported owning stakes in JFrog Ltd. (NASDAQ:FROG) at the end of the third quarter of 2021, up from 12 in the preceding quarter. Ashe Capital is the biggest stakeholder of the company.
On December 9, Stifel analyst Brad Reback upgraded JFrog Ltd. (NASDAQ:FROG) to Buy from Hold and set a price target of $45 for the stock.
4. Protagonist Therapeutics, Inc. (NASDAQ:PTGX)
Number of Hedge Fund Holders: 21
Market Cap as of January 9: $1.7 billion
Protagonist Therapeutics, Inc. (NASDAQ:PTGX) is a clinical-stage biotech company that develops peptide-based medications. The California-based pharmaceutical company is collaborating with Johnson & Johnson’s (NYSE:JNJ) Janssen Biotech on a potential oral medication for psoriasis and irritable bowel disease. Protagonist Therapeutics, Inc. (NASDAQ:PTGX) will begin a phase 2 clinical trial for oral interleukin-23 (IL-23) antagonist in early 2022.
Protagonist Therapeutics, Inc. (NASDAQ:PTGX) delivered a better-than-expected revenue of $10.3 million in the third quarter of 2021, beating estimates by $8.5 million.
As of the end of Q3 2021, Point72 Asset Management is the biggest shareholder of Protagonist Therapeutics, Inc. (NASDAQ:PTGX). Steve Cohen upped his stake in Protagonist Therapeutics, Inc. (NASDAQ:PTGX) between June and September by 280%, bringing his total shares to 4.38 million worth $77.7 million. The biotech company represents 0.34% of Point72 Asset Management’s total holdings.
Overall, 21 funds of the 867 elite funds tracked by Insider Monkey reported owning stakes in Protagonist Therapeutics, Inc. (NASDAQ:PTGX) at the end of September 2021. Meanwhile, on November 15, JMP Securities analyst Gobind Singh maintained an Outperform rating on Protagonist Therapeutics, Inc. (NASDAQ:PTGX) and raised his price target for the stock to $70 from $60.
3. Alphatec Holdings, Inc. (NASDAQ:ATEC)
Number of Hedge Fund Holders: 24
Market Cap as of January 9: $1.12 billion
Alphatec Holdings, Inc. (NASDAQ:ATEC), a medical technology company, is one of the small-cap stocks in Steve Cohen’s portfolio in Q3 2021. Point72 Asset Management increased its position in Alphatec Holdings, Inc. (NASDAQ:ATEC) by 946% between June and September. The total value of Cohen’s stake in the California-based company is $37.3 million.
Alphatec Holdings, Inc. (NASDAQ:ATEC) develops and manufactures advanced technologies and systems used in spinal surgery. Alphatec Holdings, Inc. (NASDAQ:ATEC), founded in 1990, is one of the medical device companies capitalizing on the $6.7 billion spinal fusion device market in the United States.
The company’s third-quarter revenue grew 53% year on year to $63 million. Alphatec Holdings, Inc. (NASDAQ:ATEC) provided a positive revenue outlook for fiscal 2021 of approximately $235 million, representing a 62% increase.
At the end of September 2021, 24 funds out of the 867 tracked by Insider Monkey had stakes in Alphatec Holdings, Inc. (NASDAQ:ATEC), up from 18 in the previous quarter. Deerfield Management is the largest shareholder of Alphatec Holdings, Inc. (NASDAQ:ATEC) as of Q3 2021, owning 3.59 million shares of the medical device company. The total value of this stake is $43.8 million.
2. Bandwidth Inc. (NASDAQ:BAND)
Number of Hedge Fund Holders: 26
Market Cap as of January 9: $1.6 billion
Cohen boosted his holdings in the North Carolina-based firm by 110% between June and September, raising the total number of shares held by Point72 Asset Management to 596,204, making the hedge fund Bandwidth Inc.’s (NASDAQ:BAND) largest shareholder.
Microsoft, Uber, Zoom, and Google are some of the network companies that leverage Bandwidth Inc’s (NASDAQ:BAND) application programming interfaces (APIs) to integrate communications into software and apps.
Bandwidth Inc’s (NASDAQ:BAND) revenue increased 54% to $130.6 million in the third quarter of 2021, up from $84.8 million the previous year. Bandwidth Inc. (NASDAQ:BAND) stated in its third-quarter results report that it had signed a new contract with a $16 billion Fortune 200 managed care provider.
On November 9, Needham analyst Ryan Koontz maintained a Buy rating on Bandwidth Inc. (NASDAQ:BAND) with a price target of $130.
1. PagerDuty, Inc. (NYSE:PD)
Number of Hedge Fund Holders: 30
Market Cap as of January 9: $2.74 billion
Cloud computing firm PagerDuty, Inc. (NYSE:PD) offers businesses real-time incident response and on-call management. Cohen purchased 1.21 million shares of PagerDuty, Inc. (NYSE:PD) for $50.26 million in the third quarter of 2021, representing 0.22% of his total holdings.
Craig-Hallum analyst Chad Bennett maintained a Buy rating on PagerDuty, Inc. (NYSE:PD) and set a price target of $52 for the stock on December 8.
You can also take a look at the 10 Dividend Stock Picks of Ira Unschuld’s Brant Point Investment and 10 Tech Stocks to Buy According to Former VP Al Gore.
