In this article, we will discuss the 5 stocks to invest in according to Kenneth Squire’s 13D Management. If you want to read our detailed analysis of Squire’s history, investment philosophy, and hedge fund performance, go directly to the 15 Stocks to Invest in According to Kenneth Squire’s 13D Management.
5. Olin Corporation (NYSE:OLN)
13D Management Stake Value: $12,606,000
Percentage of 13D Management’s 13F Portfolio: 4.69%
Number of Hedge Fund Holders: 37
Olin Corporation (NYSE:OLN) is a chemical product manufacturer. It works in three divisions: Chlor Alkali Products and Vinyls, Epoxy, and Winchester. In October, the company declared a quarterly dividend of $0.20 per share, in line with the previous. In addition, shares of the company surged 180.88% in the past twelve months.
Piper Sandler analyst Charles Neivert boosted his price objective on Olin to $80 from $70 in October and maintained an “Overweight” rating on the shares. In the third quarter of 2021, Olin Corporation had an EPS of $2.38, beating estimates by $0.30.
By the end of the second quarter of 2021, 37 hedge funds out of the 873 tracked by Insider Monkey held stakes in Olin Corporation, worth roughly $1.33 billion. This is compared to 34 hedge fund holders in the previous quarter, with stakes worth about $1.17 billion.
4. Alkermes plc (NASDAQ:ALKS)
13D Management Stake Value: $13,865,000
Percentage of 13D Management’s 13F Portfolio: 5.15%
Number of Hedge Fund Holders: 36
Alkermes plc (NASDAQ:ALKS) is a biopharmaceutical firm specializing in discovering, researching, and commercializing medications to meet unmet medical needs in significant therapeutic areas. The company’s biggest stakeholder is Sarissa Capital Management, with 13.21 million shares worth $407.49 million.
In November, Mizuho analyst Vamil Divan lowered his price target on Alkermes to $33 from $36 and rated the stock as “Neutral.” Alkermes’ disclosure that Johnson & Johnson (NYSE:JNJ) is attempting to partially terminate two agreements on J&J’s long-acting Invega drugs stunned the analyst.
Alkermes plc saw an increase in hedge fund sentiment recently. The number of long hedge fund positions climbed to 36 at the end of the second quarter, compared to 31 positions in the previous quarter.
3. Cheniere Energy, Inc. (NYSE:LNG)
13D Management Stake Value: $15,025,000
Percentage of 13D Management’s 13F Portfolio: 5.59%
Number of Hedge Fund Holders: 49
Cheniere Energy, Inc. (NYSE:LNG) is a liquefied natural gas (LNG) firm. On November 17, Mizuho analyst Robert Mosca initiated coverage of Cheniere Energy with a “Buy rating” and gave a price target of $122.
Cheniere Energy announced in November that it signed a contractual deal to provide liquefied natural gas to Sinochem of China beginning in July 2022. Sinochem will acquire an initial amount of 900,000 metric tonnes per year, growing to 1.8 million metric tonnes per year over 17.5 years under the sale and purchase deal.
There were 49 hedge funds in our database that held stakes in Cheniere Energy, Inc. at the end of the second quarter, compared to 40 funds in the previous quarter.
2. Papa John’s International, Inc. (NASDAQ:PZZA)
13D Management Stake Value: $15,561,000
Percentage of 13D Management’s 13F Portfolio: 5.79%
Number of Hedge Fund Holders: 30
Papa John’s International, Inc. (NASDAQ:PZZA) is an international pizza restaurant established in Kentucky. Shares of the company are up 68.03% in the past twelve months and 56.82% year to date.
In November, Benchmark analyst Todd Brooks initiated coverage of Papa John’s, rating the stock as “Buy” and gave a price target of $145. After exhibiting momentum in Q3, Papa John’s International rose to a new all-time high. North American comparable sales grew by 6.9%, while overseas markets increased by 8.3%. Revenue was $512.78 million, up 8.4% year over year and $11.85 million higher than expected.
Out of the hedge funds being tracked by Insider Monkey, New York-based investment firm Starboard Value LP is a leading shareholder in Papa John’s International, Inc. with 2.76 million shares worth more than $350.41 million.
1. Evolent Health, Inc. (NYSE:EVH)
13D Management Stake Value: $15,887,000
Percentage of 13D Management’s 13F Portfolio: 5.91%
Number of Hedge Fund Holders: 24
Evolent Health, Inc. (NYSE:EVH) offers healthcare delivery and payment systems. JPMorgan analyst Anne Samuel raised Evolent Health from “Neutral” to “Overweight” on November 18, with a price objective of $37, up from $26.
Evolent Health, Inc. accounts for 5.91 percent of 13D Management’s portfolio, with 512,500 shares valued at about $15.89 million. Evolent Health declared its financial results for the third quarter of 2021. The company’s EPS for the quarter was -$0.44, below forecasts by $0.28. In addition, the company’s revenue was $222.47 million, $3.09 million less than expected.
Hedge funds are loading up on Evolent Health, Inc., as Insider Monkey’s data shows that 24 hedge funds held a stake in the company as of the end of the second quarter of 2021, compared to 22 funds in the previous quarter.
Carillon Tower Advisers, an investment management firm, in its third-quarter 2021 investor letter, mentioned Evolent Health, Inc. (NYSE:EVH). Here is what the fund said:
“Evolent Health provides a platform of technology-enabled administrative and clinical management services to provider networks and managed care organizations to help them manage the care of patients under Value-Based Care (VBC) arrangements. The stock has been a positive contributor recently, and gave yet another positive quarterly update. After several years of erratic performance, the company is now consistently delivering better than expected results. News reports surrounding a potential acquisition of the firm by a national pharmacy chain also boosted the stock in the closing days of the quarter.”
You can also take a peek at 10 Stocks To Invest In According To Game Creek Capital and 10 Stocks to Invest in According to Alan Parsow’s Elkhorn Partners
