In this article, we will take a look at the 5 stocks to buy under $50 according to Brian Higgins’ King Street Capital. You can see our detailed analysis of Higgins’ history, investment philosophy, and hedge fund performance, at 10 Stocks to Buy Under $50 According to Brian Higgins’ King Street Capital.
5. Arch Capital Group Ltd. (NASDAQ:ACGL)
Higgins’ Stake Value: $48.2 million
Percentage of Brian Higgins’ 13F Portfolio: 3.96%
Number of Hedge Fund Holders: 22
Stock Price as of October 6: $40.54
Arch Capital Group Ltd. (NASDAQ:ACGL), through its subsidiaries, provides insurance, additional coverage, and lease insurance products globally. Founded in 1995, the Bermuda-based company ranks fourth on our list of 10 stocks to buy under $50 according to Brian Higgins’ King Street Capital.
On July 28, Arch Capital Group Ltd. (NASDAQ: ACGL) announced its second quarter 2021 revenue of $2.40 billion, beating the estimates by $450.15 million. The company also declared its earnings per share of $1.00, beating the market predictions by $0.16.
King Street Capital holds 1.24 million shares in the firm worth $48.2 million, representing 3.96% of the funds investment portfolio. At the end of the second quarter of 2021, 22 hedge funds in the database of Insider Monkey held stakes worth $1.43 billion in Arch Capital Group Ltd. (NASDAQ:ACGL). This is compared to 34 hedge funds in the preceding quarter with stakes worth roughly $1.67 billion.
On August 16, Wolfe Research analyst Michael Zaremski began coverage of Arch Capital Group Ltd. (NASDAQ:ACGL) with an Outperform rating and $51 price target.
4. Melco Resorts & Entertainment Limited (NASDAQ:MLCO)
Higgins’ Stake Value: $55.3 million
Percentage of Brian Higgins’ 13F Portfolio: 4.55%
Number of Hedge Fund Holders: 29
Stock Price as of October 6: $10.48
Melco Resorts & Entertainment Limited (NASDAQ:MLCO) is a Hong Kong-based company that owns and operates casino gaming and resort entertainment facilities. It is placed fourth on our list of the 10 stocks to buy under $50 according to Brian Higgins’ King Street Capital.
In the second quarter of 2021, Melco Resorts & Entertainment Limited (NASDAQ:MLCO) reported revenues amounting to over $566.44 million, an increase of 222.12% on a year-over-year basis.
Brian Higgins currently holds over 3.34 million shares of Melco Resorts & Entertainment Limited (NASDAQ:MLCO), amounting to more than $55.3 million in worth, representing 4.55% of his fund’s total investment value. As of the end of the second quarter of 2021, 29 hedge funds out of the 873 tracked by Insider Monkey held stakes in Melco Resorts & Entertainment Limited (NASDAQ:MLCO) worth roughly $755 million.
On July 28, HSBC analyst Charlene Liu upgraded Melco Resorts & Entertainment Limited (NASDAQ:MLCO) to Buy from Hold with an unchanged price target of $16.90.
Out of the hedge funds being tracked by Insider Monkey, New York-based Eminence Capital is a leading shareholder in Melco Resorts & Entertainment Limited (NASDAQ:MLCO) with 9.59 million shares worth $158.9 million.
3. ZIM Integrated Shipping Services Ltd (NYSE:ZIM)
Higgins’ Stake Value: $55.5 million
Percentage of Brian Higgins’ 13F Portfolio: 4.55%
Number of Hedge Fund Holders: 25
Stock Price as of October 6: $45.13
ZIM Integrated Shipping Services Ltd (NYSE:ZIM) is an international cargo shipping company based in Israel. One of the largest container lines in the Middle East, the company has a market capitalization of $5.19 billion, and ranks third on our list of the 10 stocks to buy under $50 according to Brian Higgins’ King Street Capital.
According to the recent 13F Filings, Brian Higgins’ holds 1.23 million shares of ZIM Integrated Shipping Services Ltd (NYSE:ZIM), worth $55.5 million and representing 4.55% of his fund’s total investment portfolio. By the end of the second quarter of 2021, 25 hedge funds out of the 873 tracked by Insider Monkey held stakes in ZIM Integrated Shipping Services Ltd. (NYSE:ZIM) worth roughly $327 million. This is compared to 14 hedge funds in the previous quarter with stakes worth approximately $199.4 million.
On August 24, Barclays analyst Alexia Dogani raised the price target on ZIM Integrated Shipping Services Ltd. (NYSE:ZIM) to $50 from $40, and kept an Equal Weight rating on the shares.
The company issued its quarterly earnings report for the second quarter of 2021 on August 18, with a reported EPS at $7.39, surpassing market estimates by $1.57. Additionally the company’s revenue of $2.38 billion beat the estimated revenue for the quarter by $514.35 million.
In its Q2 2021 investor letter, Evermore Global Advisors declared ZIM Integrated Shipping Services Ltd. (NYSE:ZIM) as the largest contributor to the fund’s performance. Here is what they said:
“ZIM Integrated Shipping Services (ZIM) was the largest contributor to the Fund’s performance during the second quarter. With a market cap of $5.2 billion, ZIM is an Israel-based containership operator that had its initial public offering on the New York Stock Exchange this past January. As a reminder, we discussed ZIM at length in the Q1 2021 quarterly commentary as one of the new investments that we initiated during that period.
There were several notable developments during the second quarter. Given the company’s unique asset light business model and targeted, global niche approach, ZIM continued to generate exceptionally strong cash flows. ZIM ended the period with approximately $1.25 billion in cash and about $915 million in net debt. Due to the strong operational performance, the company further strengthened its balance sheet by redeeming its Series 1 and Series 2 unsecured notes due in 2023. With the early redemption of the unsecured notes, ZIM was no longer subject to certain dividend restrictions, and it declared a special dividend of $2 per share, which will be payable on Sept 15th (goes ex on August 24th). Lastly, management revised its 2021 fullyear EBITDA guidance from $1.4 – 1.6 billion to $2.5 – $2.7 billion, which was a sizeable increase compared to the levels set last March. To that end, we continue to have high conviction in our position in ZIM.”
2. Radian Group Inc. (NYSE:RDN)
Higgins’ Stake Value: $56 million
Percentage of Brian Higgins’ 13F Portfolio: 4.61%
Number of Hedge Fund Holders: 30
Stock Price as of October 6: $23.35
Radian Group Inc. (NYSE:RDN) is a Pennsylvania-based mortgage insurance company that provides leasing, risk management and other real estate services. The company ranks second on our list of the 10 stocks to buy under $50 according to Brian Higgins’ King Street Capital.
The hedge fund run by Higgins owns more than 2.52 million shares in the company worth over $56 million, representing 4.61% of its investment portfolio. By the end of the second quarter of 2021, 30 hedge funds out of the 873 tracked by Insider Monkey held stakes in Radian Group Inc. (NYSE:RDN) worth roughly $358.6 million. The number of hedge funds that held stakes within the company remained the same for the first and second quarters of 2021.
On June 23, Needham analyst Cullen Johnson raised his price target on Radian Group Inc. (NYSE:RDN) to $30 from $27, and reiterates a Buy rating on the shares of the company.
The company recently announced its second quarter earnings report for 2021 on August 3, with earnings per share of $0.75, beating the market estimates by $0.05. The company also reported revenues of $336.99 million, beating revenue predictions by $1.52 million.
Out of the hedge funds being tracked by Insider Monkey, New York-based Rima Senvest Management is a leading shareholder in Radian Group Inc. (NYSE:RDN), with 2.73 million shares worth $60.8 million.
1. 8×8, Inc. (NYSE:EGHT)
Higgins’ Stake Value: $66.6 million
Percentage of Brian Higgins’ 13F Portfolio: 5.45%
Number of Hedge Fund Holders: 29
Stock Price as of October 6: $23.84
8×8, Inc. (NYSE:EGHT) is a voice over IP company that provides cloud-based voice, video and mobile communications for businesses and enterprises. The California-based company ranks first on our list of the 10 stocks to buy according to Brian Higgins’ King Street Capital.
On August 4, the company issued its quarterly earnings report for the second quarter of 2021, with reported earnings per share at -$0.40, falling short of the estimates by $0.08. On the other hand, the declared revenue for the quarter amounted to $148.33 million, surpassing market estimates by $5.26 million.
Based on the latest 13F Filings, Brian Higgins’ King Street Capital holds 2.4 million shares of 8×8, Inc. (NYSE:EGHT), amounting to over $66.6 million in worth and representing 5.45% of the fund’s total portfolio value. By the end of the second quarter of 2021, 29 hedge funds out of the 873 tracked by Insider Monkey held stakes in 8×8, Inc. (NYSE:EGHT) worth roughly $928 million. This is compared to 24 hedge funds in the preceding quarter that held stakes worth approximately $1 billion.
On June 21, Needham analyst Ryan Koontz initiated coverage of 8×8, Inc. (NYSE:EGHT) with a Buy rating and $32 price target.
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