In this article, we discuss the 5 tech stocks that hedge funds are buying despite rising interest rates. If you want to read about some tech stocks that hedge funds like, go directly to 10 Tech Stocks Hedge Funds are Buying Despite Rising Interest Rates.
5. Switch, Inc. (NYSE:SWCH)
Number of Hedge Fund Holders in Q2 2022: 31
Number of Hedge Fund Holders in Q1 2022: 14
Switch, Inc. (NYSE:SWCH) provides internet services and related infrastructure. Switch, Inc. (NYSE:SWCH) was founded in 2000 and is based in Las Vegas. The company develops and operates data centers in the states of Nevada, Michigan, and Georgia. It primarily serves technology and digital media companies, finance institutions, and government agencies.
The company claims that the data center services it provides are far superior to peers. The firm bases these claims on patented technology and third party audits. As cloud computing continues to attract companies all over the world, data center firms like Switch are benefiting from this as well since cloud firms need data center solutions to continue to offer seamless services. Data center firms are digital versions of real estate investment trusts.
Among the hedge funds being tracked by Insider Monkey, Florida-based investment firm Pentwater Capital Management is a leading shareholder in Switch, Inc. (NYSE:SWCH), with 6.5 million shares worth more than $218 million.
4. R1 RCM Inc. (NASDAQ:RCM)
Number of Hedge Fund Holders in Q2 2022: 30
Number of Hedge Fund Holders in Q1 2022: 0
R1 RCM Inc. (NASDAQ:RCM) provides tech-driven healthcare solutions. On August 3, the firm posted earnings for the second quarter of 2022, reporting losses per share of $0.07, missing market estimates by $0.11. The revenue over the period was $391 million, up 10% compared to the revenue over the same period last year and roughly in line with analyst estimates. The firm said it was expecting 2022 revenue previously to be around $1,660 million – $1,700 million, but raised the guidance to $1,850 million – $1,870 million, versus consensus estimates of $1.870 million.
On August 4, Deutsche Bank analyst George Hill maintained a Buy rating on R1 RCM Inc. (NASDAQ:RCM) stock and raised the price target to $31 from $26, appreciating the second quarter earnings of the firm.
At the end of the second quarter of 2022, 30 hedge funds in the database of Insider Monkey held stakes worth $262 million in R1 RCM Inc. (NASDAQ:RCM).
3. Leidos Holdings, Inc. (NYSE:LDOS)
Number of Hedge Fund Holders in Q2 2022: 29
Number of Hedge Fund Holders in Q1 2022: 19
Leidos Holdings, Inc. (NYSE:LDOS) provides tech-related services and solutions in the defense, intelligence, civil, and health markets. On August 22, the company announced that it had won a contract worth $358 million by the US Naval Sea Systems Command. The contract is for the development and delivery of a medium-size unmanned undersea vehicle. The vehicle will be equipped with state-of-the-art tech that supports intelligence preparation by providing submarine-based autonomous oceanographic sensing and data collection for the US Navy.
On August 29, RBC Capital analyst Ken Herbert initiated coverage of Leidos Holdings, Inc. (NYSE:LDOS) stock with a Sector Perform rating and a price target of $106, noting the firm was well positioned to benefit from expanding opportunities and margin stability.
Among the hedge funds being tracked by Insider Monkey, New York-based firm Junto Capital Management is a leading shareholder in Leidos Holdings, Inc. (NYSE:LDOS), with 858,976 shares worth more than $86 million.
2. Global Business Travel Group, Inc. (NYSE:GBTG)
Number of Hedge Fund Holders in Q2 2022: 26
Number of Hedge Fund Holders in Q1 2022: 0
Global Business Travel Group, Inc. (NYSE:GBTG) owns and runs a travel platform. On August 11, the firm posted earnings for the second quarter of 2022, reporting earnings per share of $0.44. The revenue over the period was $486 million, up 217% compared to the revenue over the same period last year. The firm said it was expecting 2022 revenue to be around $1.8 billion to $1.85 billion and full-year Adjusted EBITDA guidance ranged between $90 million to $100 million.
Global Business Travel Group, Inc. (NYSE:GBTG) primarily provides tech-enabled solutions to business travelers and corporate clients, travel content suppliers, and third-party travel agencies. The platform it owns manages travel, expenses, meetings, and events.
At the end of the second quarter of 2022, 26 hedge funds in the database of Insider Monkey held stakes worth $86 million in Global Business Travel Group, Inc. (NYSE:GBTG).
1. Chindata Group Holdings Limited (NASDAQ:CD)
Number of Hedge Fund Holders in Q2 2022: 22
Number of Hedge Fund Holders in Q1 2022: 10
Chindata Group Holdings Limited (NASDAQ:CD) provides carrier-neutral hyper scale data center solutions. On August 25, the firm posted earnings for the second quarter of 2022, reporting earnings per share of $0.08. The revenue over the period was $155 million, up 45% compared to the revenue over the same period last year. The firm said it was expecting 2022 revenue to be around RMB 4,130 million – RMB 4,230 million, an increase of 44.8 – 48.3% compared to 2021.
Chindata Group Holdings Limited (NASDAQ:CD) was founded in 2015 and is based in China. It employs more than 1,300 people. The firm also has business interests in India, Malaysia, and Southeast Asia.
At the end of the second quarter of 2022, 22 hedge funds in the database of Insider Monkey held stakes worth $155 million in Chindata Group Holdings Limited (NASDAQ:CD), compared to 10 in the preceding quarter worth $83 million.
You can also take a peek at 10 Best Stocks for Animal Lovers and 10 Best Nickel Stocks to Buy Now.
