5 Stocks to Buy Now According to Leonard A. Potter’s Wildcat Capital Management

3. Goosehead Insurance, Inc (NASDAQ:GSHD)

Wildcat Capital Management Stake Value: $46,397,000
Percentage of Wildcat Capital Management’s 13F Portfolio: 7.55%
Number of Hedge Fund Holders: 17

Goosehead Insurance, Inc (NASDAQ:GSHD) provides insurance agency search services in the United States, and serves as a holding company for Goosehead Financial, LLC. As of the end of the fourth quarter, 17 hedge funds in Insider Monkey’s database held stakes in Goosehead Insurance, Inc (NASDAQ:GSHD), an increase compared to 13 funds in the preceding quarter.

Following the company’s Q4 results, Piper Sandler analyst Paul Newsome decreased his price objective on Goosehead Insurance, Inc (NASDAQ:GSHD) to $120 from $140 and reiterated an ‘Overweight’ rating on the stock. Newsome warned investors in a research report that Goosehead Insurance, Inc (NASDAQ:GSHD)’s earnings were lower than anticipated due to higher-than-expected expenditures as it pushes growth initiatives.

Wildcat Capital Management sold 1,950 shares of Goosehead Insurance, Inc (NASDAQ:GSHD) in the fourth quarter, ending the period with 356,683 shares of Goosehead Insurance, Inc (NASDAQ:GSHD), worth about $46.40 million.

Polen Capital, an investment management firm, mentioned Goosehead Insurance, Inc (NASDAQ:GSHD) in its first quarter 2021 investor letter. Here is what the fund said:

“Goosehead Insurance is a revolutionary business model and technology platform for the insurance industry. It operates as a franchise business model, which generates prolific free cash flow that management reinvests in an effort to strengthen its competitive position, customer experience, employee training, and core technology. The company continues to experience among the fastest and most profitable growth in the Portfolio since our purchase in the third quarter 2020. Goosehead grew revenue by 50% in the fourth quarter of 2020. In short, we continue to be excited about the long-term prospects of this flywheel company.”