5 Small-Cap Stocks With Insider Buying

1. DigitalBridge Group, Inc. (NYSE:DBRG)

Number of Hedge Fund Holders: 23

DigitalBridge Group, Inc. (NYSE:DBRG) is a company that focuses on investing in and managing various businesses within the digital ecosystem, such as cell towers, data centers, fiber, small cells, edge infrastructure, digital infrastructure, and real estate. The company, which was established in 2009, has headquarters located in Boca Raton, Florida. On September 20, 2022, officers and directors at DigitalBridge Group, Inc. (NYSE:DBRG) purchased about 32,000 shares of the company, priced at $15.22 each. As of March 10, the stock trades at $11.97, indicating a negative return of 21.3% since the insiders purchased the company shares.

On February 27, B. Riley analyst Daniel Day maintained a Buy recommendation on DigitalBridge Group, Inc. (NYSE:DBRG) but lowered the firm’s price target on the shares to $32 from $36 following the Q4 results. Despite DigitalBridge Group, Inc. (NYSE:DBRG)’s ongoing transition towards a simpler business model as a pure-play alternative asset manager that focuses on digital infrastructure, the quarterly results may still appear inconsistent, the analyst wrote in a research note. However, DigitalBridge has continued to demonstrate robust growth in fees, and the outlook for fundraising remains strong, as per the analyst.

According to Insider Monkey’s Q4 data, 23 hedge funds were long DigitalBridge Group, Inc. (NYSE:DBRG), compared to 22 funds in the prior quarter. Charles Akre’s Akre Capital Management is the largest stakeholder of the company, with approximately 5 million shares worth $54.60 million. 

Ave Maria made the following comment about DigitalBridge Group, Inc. (NYSE:DBRG) in its Q3 2022 investor letter:

“DigitalBridge Group, Inc. (NYSE:DBRG) is in the process of transforming from a real estate investment trust (REIT) into an alternative asset manager. Legally, the company changed from a REIT to a C-Corp. in mid-2022. The company is monetizing the operating assets that it holds on its balance sheet. Once monetized, the company will look more like a pure-play alternative asset manager, similar to its large competitor, The Blackstone Group. The company has undergone a substantial transformation thus far, which should meaningfully impact the reported financials next year.”

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