5 Small-Cap Stocks to Buy According to David Einhorn’s Greenlight Capital

1. Green Brick Partners, Inc. (NASDAQ:GRBK)

Greenlight Capital’s Stake Value: $357,431,000

Percentage of Greenlight Capital’s 13F Portfolio: 23.96%

Number of Hedge Fund Holders: 16

Market Capitalization as of December 4: $1.394 billion

In addition to being a top small-cap stock in Greenlight Capital’s portfolio, Green Brick Partners, Inc. (NASDAQ:GRBK) is also the largest holding of the hedge fund from the third quarter. David Einhorn holds 17.4 million shares in Green Brick Partners, Inc. (NASDAQ:GRBK), worth $357.4 million, accounting for 23.96% of his total Q3 investments. 

Green Brick Partners, Inc. (NASDAQ:GRBK), a Texas-based homebuilding and land development company, posted its Q3 earnings on November 2. EPS for the quarter came in at $0.95, missing estimates by -$0.10. The revenue amounted to $342.34 million, up 24.12% year-over-year, but missing estimates by $26.02 million. 

Maintaining a constructive stance of the homebuilding sector on October 14, JPMorgan analyst Michael Rehaut downgraded Green Brick Partners, Inc. (NASDAQ:GRBK) to Neutral from Overweight with a price target of $28, down from $32.

Springbok Capital is one of the leading stakeholders of the company, with a $17.45 million stake in Green Brick Partners, Inc. (NASDAQ:GRBK) as of Q3 2021. Overall, 16 funds were long Green Brick Partners, Inc. (NASDAQ:GRBK) in the third quarter, with total stakes amounting to $392.3 million. 

Here is what Diamond Hill Small Cap Fund has to say about Green Brick Partners, Inc. (NASDAQ:GRBK) in its Q3 2021 investor letter:

“Homebuilder Green Brick Partners has benefited from strong housing demand leading to higher prices. However, rising interest rates, as we saw in Q3, tend to be an industry-wide headwind, just as supply chain challenges delayed home closings, pushing back revenue to later quarters. Longer term, our thesis on Green Brick remains unchanged. We believe it is one of the best positioned small-cap housing companies, with attractive real estate, a strong balance sheet and a strong, shareholder-aligned management team that has been a wise allocator of capital.”

You can also take a look at 11 Best Penny Stocks To Buy According To Hedge Funds and 10 Extreme Dividend Stocks With Upside Potential.

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