5 Stocks to Buy According to Don Morgan’s Brigade Capital

2. Magnachip Semiconductor Corporation (NYSE:MX)

Brigade Capital’s Stake Value: $18,768,000
Percentage of Brigade Capital’s 13F Portfolio: 2.1%
Number of Hedge Fund Holders: 27

Magnachip Semiconductor Corporation (NYSE:MX) develops and manufactures analogue and mixed-signal semiconductor platform solutions for communications, IoT, consumer, computer, industrial, and automotive applications. Rajvindra Gill, a Needham analyst, expressed his optimism for Magnachip Semiconductor Corporation (NYSE:MX) on August 10. He maintained a ‘Buy’ rating and a $22 price target on the stock.

On September 6, Magnachip Semiconductor Corporation (NYSE:MX) unveiled its third-generation 200V MV Metal-Oxide-Semiconductor Field-Effect Transistors for industrial power supplies and motor controllers for Light Electric Vehicles.

Toronado Partners is a prominent stakeholder of Magnachip Semiconductor Corporation (NYSE:MX), with 2.57 million shares of the company, worth over $37.39 million. Even after selling 7,624 shares of Magnachip Semiconductor Corporation (NYSE:MX) in the second quarter, Don Morgan’s Brigade Capital holds more than 1.29 million shares of the company, worth about $18.77 million.

Insider Monkey found 27 hedge funds bullish on Magnachip Semiconductor Corporation (NYSE:MX) at the close of the second quarter of 2022. These funds held collective stakes in the company valued at $210.85 million, down from $252.98 million in the first quarter of 2022, when 28 hedge funds were long Magnachip Semiconductor Corporation (NYSE:MX).

Here is what Altron Capital Management had to say about Magnachip Semiconductor Corporation (NYSE:MX) in its Q4 2021 investor letter:

“MagnaChip Semiconductor Corp. (NYSE:MX). While the previous buyout offer from Wise Road Capital did not go through as many expected, the company is still in talks with other potential buyers. Furthermore, the company announced a USD 75 million share buyback, which represents a significant percentage of the company’s shares. While we do not generally enter positions with the anticipation of a buyout, it is the case that a MagnaChip acquisition will be the most likely outcome.”