In this article, we discuss the 5 stocks under $30 to buy according to David Einhorn’s Greenlight Capital. If you want our detailed analysis of these stocks, go directly to the 10 Stocks Under $30 to Buy According to David Einhorn’s Greenlight Capital.
5. Danimer Scientific, Inc. (NYSE:DNMR)
Greenlight Capital’s Stake Value: $38,532,000
Percentage of Greenlight Capital’s 13F Portfolio: 2.58%
Number of Hedge Fund Holders: 21
Share Price as of December 15: $10.89
Danimer Scientific, Inc. (NYSE:DNMR), a Georgia-based biopolymer manufacturer, is one of the best stocks under $30 to invest in according to Greenlight Capital’s David Einhorn. Einhorn, as of Q3 2021, holds 2.35 million Danimer Scientific, Inc. (NYSE:DNMR) shares, worth $38.5 million. The stock accounts for 2.58% of David Einhorn’s total investments in the third quarter.
On November 15, Danimer Scientific, Inc. (NYSE:DNMR) announced its Q3 results, reporting a loss per share of $0.15, missing estimates by $0.06. The quarterly revenue totaled $13.37 million, missing estimated revenue by $1.20 million.
As per the Q3 database of Insider Monkey, 21 hedge funds were bullish on Danimer Scientific, Inc. (NYSE:DNMR), with stakes equaling $153 million. This is compared to 30 funds holding stakes worth $309.5 million in Danimer Scientific, Inc. (NYSE:DNMR) in the preceding quarter.
Here is what Nelson Capital Management has to say about Danimer Scientific, Inc. (NYSE:DNMR) in its Q1 2021 investor letter:
“In the materials sector, we bought Danimer Scientific (tkr: DNMR), a next-generation bioplastics company offering completely biodegradable plastics that break down in virtually any environment.
While essential to modern life, plastic products are an ongoing environmental concern due to their longevity and therefore the pollution that results. Despite nationwide efforts to recycle plastics, only 8.5% of plastics waste in t he U .S. is being recycled, according to a study by the U.S. Environmental Protection Agency. Danimer Scientific (t k r: DNMR) has developed a method to make plastic products that are 100% biodegradable and compostable without compromising on functionality. The company sells its PHA- based plastics under the brand name Nodax and is currently the only viable commercial-scale offering.
Danimer uses canola oil to create 100% biodegradable and compostable biopolymer, PHA, through a completely waste-free process. PH A biodegrades in both anaerobic (without oxygen) and aerobic (with oxygen) environments, and unlike other biodegradable plastics, it does not need heat, moisture, or an industrial composting plant to break down. PHA-based plastics can effectively biodegrade in a waste treatment facility, the ocean, or even in home compost piles within 12-18 weeks after the product is discarded.
PHA plastics are versatile, adaptable and heat and UV-resistant. They have been FDA approved for food contact and are comparable in functionality to many products produced using petrochemicals. The formula can be customized to create many types of plastic resins for a multitude of purposes. The range of applications for products made with PH A is enormous and includes straws, cups, lids, bottles, produce bags, shopping bags, utensils, diaper linings, plates, wipes, toys, trash bags, seals, labels, glues and much more.
Danimer went public in late 2020 via Special Purpose Acquisition Company (SPAC). As a newly public company, Danimer’s stock price tends to be rather volatile, but we bought a small position for the long-term opportunities it offers. Dem and for PHA plastics is likely to accelerate over the next several years as corporations and the public become increasingly concerned about the environmental impact of wrappers from consumer- packaged goods. More government regulation of single- use plastics has pressured large corporations to adapt. Additionally, the Biden administration has a strong emphasis on climate change and sustainability which will provide a near- to-mid-term tailwind for Danimer. As the leading PHA innovator with over 125 patents across 20 countries, Danimer is well-positioned to benefit from these trends.”
4. CONSOL Energy Inc. (NYSE:CEIX)
Greenlight Capital’s Stake Value: $55,137,000
Percentage of Greenlight Capital’s 13F Portfolio: 3.69%
Number of Hedge Fund Holders: 15
Share Price as of December 15: $20.67
CONSOL Energy Inc. (NYSE:CEIX) is an American energy company from Pennsylvania that is primarily focused on coal mining and natural gas, via its subsidiaries. B. Riley analyst Lucas Pipes on October 4 raised the price target on CONSOL Energy Inc. (NYSE:CEIX) to $35 from $24 and kept a Buy rating on the shares, citing rising natural gas prices in North America.
David Einhorn, via Greenlight Capital, owns 2.11 million shares of CONSOL Energy Inc. (NYSE:CEIX) as of the third quarter, worth $55.1 million, representing 3.69% of the firm’s total investments.
CONSOL Energy Inc. (NYSE:CEIX), on November 2, published its Q3 earnings. The company reported a loss per share of $0.14, missing estimates by $0.78.
Encompass Capital Advisors is one of the leading CONSOL Energy Inc. (NYSE:CEIX) stakeholders from Q3, with 568,581 shares worth $14.79 million. CONSOL Energy Inc. (NYSE:CEIX) is a new addition in the firm’s third quarter portfolio. Overall, 15 hedge funds monitored by Insider Monkey were long CONSOL Energy Inc. (NYSE:CEIX), up from 13 funds in the preceding quarter.
Here is what Greenlight Capital has to say about CONSOL Energy Inc. (NYSE:CEIX) in its Q2 2021 investor letter:
“Thermal Coal and Natural Gas
ESG investing is inflationary, as green energy is simply more expensive than hydrocarbons. Hydrocarbon energy companies are starved for capital and are being told to change their ways. The result is less exploration and drilling. Even with benchmark oil prices surging over the last year, companies are loath to drill more. Normally, the cure for high prices is high prices. With ESG in the proverbial driver’s seat, we might need much higher prices still in order to increase investment to meet demand.
There is almost nothing less popular than thermal coal. From 2011 to 2020, U.S. coal production declined by 51%. U.S. demand has fallen as we’ve shifted to alternative sources of electricity. As unpopular as coal is though, it still makes up about 20% of U.S. electricity generation. Globally, coal demand is growing modestly as China and India add power generation capacity faster than the West is reducing it. Even so, reduced oil and gas drilling has caused natural gas prices to advance and coal prices are following. Seaborne thermal coal prices are up 140% year-over-year and at the highest levels since 2011, and Northern Appalachia thermal coal prices are catching up, rising 23% in the last month alone.
We own CONSOL Energy (CEIX), the lowest cost, most efficient miner in Appalachia, which is poised to benefit from rising coal prices. It trades at 12x consensus earnings estimates that look stale to us, as they do not reflect recent coal price gains.”
3. Change Healthcare Inc. (NASDAQ:CHNG)
Greenlight Capital’s Stake Value: $75,108,000
Percentage of Greenlight Capital’s 13F Portfolio: 5.03%
Number of Hedge Fund Holders: 50
Share Price as of December 15: $20.83
Greenlight Capital’s $75.1 million position in Change Healthcare Inc. (NASDAQ:CHNG) represents 5.03% of the hedge fund’s total investments from the third quarter. Change Healthcare Inc. (NASDAQ:CHNG) is a company offering data analytics and data transfer between customers and service providers, to enable improved workflows, assist administrative and financial efficiencies, and refine clinical decisions.
Earnings for the quarter ending September were published by Change Healthcare Inc. (NASDAQ:CHNG) on November 3. The company reported an EPS of $0.35, beating estimates by $0.35. The revenue jumped 9.37% from the prior year quarter to $826.76 million, but missed estimates by $6.33 million.
50 funds reported owning stakes in Change Healthcare Inc. (NASDAQ:CHNG) in Q3 2021, down from 51 funds in the preceding quarter. Abrams Capital Management is the biggest Change Healthcare Inc. (NASDAQ:CHNG) stakeholder, with 16.9 million shares worth $355.5 million.
2. Teck Resources Limited (NYSE:TECK)
Greenlight Capital’s Stake Value: $112,789,000
Percentage of Greenlight Capital’s 13F Portfolio: 7.56%
Number of Hedge Fund Holders: 41
Share Price as of December 15: $26.90
Teck Resources Limited (NYSE:TECK) is a Canadian company specializing in mineral development and mining, offering zinc, lead, silver, coal, gold, and copper, among other minerals and natural resources. Greenlight Capital holds an $112.78 million stake in Teck Resources Limited (NYSE:TECK), which represents 7.56% of the hedge fund’s total Q3 investments.
In the third quarter, 41 hedge funds were long Teck Resources Limited (NYSE:TECK), with total stakes equaling $1.31 billion. Jacob Mitchell’s Antipodes Partners is the biggest stakeholder of Teck Resources Limited (NYSE:TECK) from the third quarter, with 7.2 million shares worth $179.65 million.
Stifel analyst Alex Terentiew on December 13 initiated coverage of Teck Resources Limited (NYSE:TECK) with a Buy rating and a C$50 price target. Stating that Teck Resources Limited (NYSE:TECK) is an underappreciated stock, the analyst kept a long-term bullish outlook for copper, observing that Teck Resources Limited (NYSE:TECK)’s copper-focused growth profile and the current “exceptional price strength in coking coal” has created an ideal scenario for Teck Resources Limited (NYSE:TECK).
Announcing on October 27 its Q3 results, Teck Resources Limited (NYSE:TECK) posted earnings per share of $1.52, beating estimates by $0.34. Revenue for the quarter came in at $3.21 billion, up 84.60% year-over-year, outperforming estimated revenue by $268.89 million.
1. Green Brick Partners, Inc. (NYSE:GRBK)
Greenlight Capital’s Stake Value: $357,431,000
Percentage of Greenlight Capital’s 13F Portfolio: 23.96%
Number of Hedge Fund Holders: 16
Share Price as of December 15: $29.59
Green Brick Partners, Inc. (NYSE:GRBK) ranks first on our list of the best stocks under $30 to buy according to David Einhorn’s Greenlight Capital. Green Brick Partners, Inc. (NYSE:GRBK) is a new arrival in David Einhorn’s Q3 portfolio, and is the largest holding of the hedge fund manager, which represents 23.96% of his total investments. Einhorn, via Greenlight Capital, holds a $357.4 million stake in Green Brick Partners, Inc. (NYSE:GRBK), which is a Texas-based diversified land development and home building company.
The third quarter earnings were published on November 2 by Green Brick Partners, Inc. (NYSE:GRBK). The company reported earnings per share of $0.95, missing estimates by $0.10.
Keeping a constructive stance on the homebuilding sector, JPMorgan analyst Michael Rehaut downgraded Green Brick Partners, Inc. (NASDAQ:GRBK) to Neutral from Overweight with a price target of $28, down from $32 on October 14.
16 hedge funds in the third quarter database of Insider Monkey were bullish on Green Brick Partners, Inc. (NASDAQ:GRBK), up from 14 funds in the preceding quarter. Springbok Capital is a prominent stakeholder of Green Brick Partners, Inc. (NASDAQ:GRBK) as of September this year, with 850,681 shares worth $17.45 million.
Here is what Diamond Hill Small Cap Fund has to say about Green Brick Partners, Inc. (NASDAQ:GRBK) in its Q3 2021 investor letter:
“Homebuilder Green Brick Partners has benefited from strong housing demand leading to higher prices. However, rising interest rates, as we saw in Q3, tend to be an industry-wide headwind, just as supply chain challenges delayed home closings, pushing back revenue to later quarters. Longer term, our thesis on Green Brick remains unchanged. We believe it is one of the best positioned small-cap housing companies, with attractive real estate, a strong balance sheet and a strong, shareholder-aligned management team that has been a wise allocator of capital.”
You can also take a look at 10 High Dividend Stocks with Over 12% Yield and 10 Best Stocks to Buy for the Next 10 Years.
