In this article, we will take a look at the 5 stocks to buy according to Michael Rothenberg’s Moab Capital. If you want to read our comprehensive analysis of the history, investment philosophy, and hedge fund preference of Moab Capital, you can go directly to 10 Stocks to Buy According to Michael Rothenberg’s Moab Capital.
5. Magellan Health Inc (NASDAQ:MGLN)
Moab Capital’s Stake Value: $2.043 million
Percentage of Moab Capital’s 13F Portfolio: 4.98%
Number of Hedge Fund Holders as of Q3 2021: 23
Magellan Health Inc (NASDAQ:MGLN), based in Phoenix, Arizona, is a healthcare company that develops solutions and health plans for institutions, employers, and state and federal healthcare programs. The company announced its Q3 2021 revenue of $1.25 billion on November 5 this year. The revenue grew year over year by 6.8% and surpassed consensus by $40 million. However, Magellan Health Inc (NASDAQ:MGLN)’s Q3 EPS of $0.03 was short of estimates by $0.34.
Moab Capital holds over 21,000 shares of Magellan Health Inc (NASDAQ:MGLN) as of Q3 2021, worth over $2 million and accounting for almost 5% of the fund’s portfolio. Jeffrey Smith’s Starboard Value LP is the leading shareholder in Magellan Health Inc (NASDAQ:MGLN) with 2.3 million shares worth more than $223 million. Overall, out of the 867 elite hedge funds being tracked by Insider Monkey, 23 were bullish on Magellan Health Inc (NASDAQ:MGLN) by the end of the third quarter of 2021.
4. Amazon.com, Inc. (NASDAQ:AMZN)
Moab Capital’s Stake Value: $2.3 million
Percentage of Moab Capital’s 13F Portfolio: 5.6%
Number of Hedge Fund Holders as of Q3 2021: 242
The multinational technology company’s Q3 revenue was $110.81 billion, reported on October 28. Although the revenue grew year over year by 15.3%, it missed estimates by $850 million. The Q3 EPS of $6.12 similarly missed consensus by $2.81.
On November 10, Ivan Feinseth, an analyst at Tigress Financial, raised his price target on Amazon.com, Inc. (NASDAQ:AMZN) to $4,460 from $4,370 to reflect its earnings in Q3, and maintained a “Buy” rating on the shares. According to the analyst, Amazon.com, Inc. (NASDAQ:AMZN) would overcome supply chain headwinds and benefit from the 2021 holiday season shortly.
Out of the 867 hedge funds tracked by Insider Monkey, 242 have stakes in Amazon.com, Inc. (NASDAQ:AMZN) as of Q3 2021 worth over $42 billion, down from 271 hedge funds by the end of the second quarter of 2021.
In its Q3 2021 investor letter, Polen Capital mentioned Amazon.com, Inc. (NASDAQ:AMZN) and discussed its stance on the firm. Here is what the firm had to say:
“Amazon has also lagged as its revenue growth is slowing on the very difficult comparisons from last year when this behemoth was growing revenue by over 40%. We still expect exceptional long-term growth and significant margin expansion as the fastest growing (and now large) segments of Amazon are also generating the highest margins.”
3. William Penn Bancorporation (NASDAQ:WMPN)
Moab Capital’s Stake Value: $2.409 million
Percentage of Moab Capital’s 13F Portfolio: 5.87%
Number of Hedge Fund Holders as of Q3 2021: 5
William Penn Bancorporation (NASDAQ:WMPN), headquartered in Pennsylvania, is a bank holding company that provides commercial and retail financial services.
At the end of the third quarter of 2021, Moab Capital held roughly 200,000 shares of William Penn Bancorporation (NASDAQ:WMPN), amounting to over $2.4 million and representing 5.87% of the fund’s total portfolio value. During the third quarter of 2021, Moab Capital raised its stake in William Penn Bancorporation (NASDAQ:WMPN) by 532%, indicating a strong hedge fund sentiment about the stock. By the end of the third quarter of 2021, 5 hedge funds in the database of Insider Monkey held stakes worth $8.9 million in William Penn Bancorporation (NASDAQ:WMPN), up from $6.8 million in Q2 2021.
In October, Piper Sandler analyst Justin Crowley assumed the coverage of William Penn Bancorporation (NASDAQ:WMPN) with an “Overweight” rating and a price target of $14.50.
2. Air Transport Services Group Inc. (NASDAQ:ATSG)
Moab Capital’s Stake Value: $2.879 million
Percentage of Moab Capital’s 13F Portfolio: 7.01%
Number of Hedge Fund Holders as of Q3 2021: 23
Air Transport Services Group Inc. (NASDAQ:ATSG) is an Ohio-based aviation holding company. The company deals with air cargo transportation domestically and internationally.
Announced in November, the company’s Q3 revenue was $465.9 million, which demonstrated year-over-year growth of 15.3% and beat consensus forecasts by $28.6 million. Similarly, the Q3 EPS of $0.6 crossed estimates by $0.14.
Based on data about the 873 hedge funds tracked by Insider Monkey, Gregg J. Powers’ Private Capital Management is the largest institutional shareholder of Air Transport Services Group Inc. (NASDAQ:ATSG), with shares worth $21 million by the end of Q3 2021. Additionally, 23 hedge funds on Insider Monkey’s database have stakes in the company as of Q3, compared with 19 in the previous quarter. The total value of these stakes is over $117 million.
Bernzott Capital Advisors published its “US Small Cap Value Fund” second-quarter 2021 investor letter in which it mentioned Air Transport Services Group Inc. (NASDAQ:ATSG) and shared insights about the company. Here is what the investor letter said:
“Air Transportation Services (ATSG): Demand for the company’s leased air freighters for time-definite transportation networks has been jumpstarted in recent years by e-commerce growth. The company’s order book is its strongest ever, with contract terms lengthening in some cases. This provides excellent long-term visibility with a more stable earnings profile than other transportation companies. The prospects for significant cash flow growth are bright. The company operates roughly half of Amazon’s freighters, and Amazon owns 19.5% of the company. DHL is also a significant, long-term customer. The Department of Defense is the company’s largest customer, as ATSG handles both passengers and freight for the military. This business, along with a smaller passenger charter operation, should stabilize in 2021 after pandemic-induced weakness, and shift to a tailwind in 2022. ATSG trades at just 7x EV/EBITDA and offers attractive upside potential.”
1. Athene Holding Ltd. (NYSE:ATH)
Moab Capital’s Stake Value: $5.708 million
Percentage of Moab Capital’s 13F Portfolio: 13.91%
Number of Hedge Fund Holders as of Q3 2021: 49
Moab Capital held 82,888 shares in the retirement services company worth upwards of $5.7 million by the end of Q3 2021. However, the leading institutional shareholder in the company, based on Insider Monkey’s database, was Matthew Halbower’s Pentwater Capital Management with approximately 3.6 million shares valued at $247 million.
Athene Holding Ltd. (NYSE:ATH)’s Q3 2021 EPS announced in November was $2.57, which passed consensus estimates by $0.47. As a result, Truist analyst Mark Hughes raised his price target on Athene Holding Ltd. (NYSE:ATH) to $88 from $68. Moreover, he maintained a “Hold” rating on the stock.
On December 3, Athene Holding Ltd. (NYSE:ATH) announced its plan to acquire a controlling stake in Aqua Finance worth roughly $1 billion.
You can also take a peek at the 10 Best Dividend Stocks to Buy According to Billionaire Howard Marks and 12 Best Autonomous Vehicle Stocks to Buy for 2021.
