5 Stocks Getting Attention of Elite Hedge Funds

3. Nuance Communications, Inc. (NASDAQ: NUAN)

Number of Hedge Fund Holders: 72

Nuance Communications, Inc. (NASDAQ: NUAN) is a Massachusetts-based firm that markets artificial intelligence solutions. It is ranked third on our list of 10 stocks getting the attention of elite hedge funds.

In earnings results for the third fiscal quarter, posted on August 6, Nuance Communications, Inc. (NASDAQ: NUAN) reported earnings per share of $0.16, missing market expectations by $0.01. The revenue over the period was $336 million, beating estimates by more than $2 million. 

Out of the hedge funds being tracked by Insider Monkey, New York-based firm Coatue Management is a leading shareholder in Nuance Communications, Inc. (NASDAQ: NUAN) with 13 million shares worth more than $732 million. 

In its Q2 2021 investor letter, ClearBridge Investments, an asset management firm, highlighted a few stocks and Nuance Communications, Inc. (NASDAQ: NUAN) was one of them. Here is what the fund said:

“In general, improving growth companies are taking specific actions to enhance their growth profiles going forward, whether through a restructuring, business model change, new management team or more productive use of assets. Another recent example is Nuance Communications, which was simplified and reorganized under new leadership in 2018 and subsequently acquired by Microsoft for a significant premium this quarter. This continues the Strategy’s long track record of positioning successfully to benefit from consolidation, with more than 80 companies having been acquired since inception.”