In this article, we discuss 5 WallStreetBets stocks that are gaining in August. If you want to see more stocks in this selection, check out 10 WallStreetBets Stocks Gaining in August.
5. Heron Therapeutics, Inc. (NASDAQ:HRTX)
Number of Hedge Fund Holders: 20
Share Price Gain in the Last Month as of August 12: 76.08%
Heron Therapeutics, Inc. (NASDAQ:HRTX) is a California-based biotechnology company, engaged in formulating treatments for unmet needs for cancer patients. Redditors are pouring into Heron Therapeutics, Inc. (NASDAQ:HRTX) lately and the stock has climbed about 76% in the last month as of August 12.
The stock traded 16% higher on August 9 after Heron Therapeutics, Inc. (NASDAQ:HRTX) posted above-consensus earnings and revenue in Q2 2022. The company expects Q3 2022 net product sales for ZYNRELEF, its postoperative pain drug, to increase by 40% to 50% compared to the prior quarter. Additionally, cost cutting activities are forecasted to result in over $50 million in reductions in annual operating expenses in 2023.
According to Insider Monkey’s data, 20 hedge funds were bullish on Heron Therapeutics, Inc. (NASDAQ:HRTX) at the end of Q1 2022, compared to 19 funds in the earlier quarter. Julian Baker and Felix Baker’s Baker Bros. Advisors is the leading stakeholder of the company, with 8.13 million shares worth $46.5 million.
4. Invitae Corporation (NYSE:NVTA)
Number of Hedge Fund Holders: 29
Share Price Gain in the Last Month as of August 12: 82.65%
Invitae Corporation (NYSE:NVTA) was incorporated in 2010 and is headquartered in San Francisco, California. It is a medical genetics company that offers genetic tests for hereditary cancer, cardiology, neurology, pediatrics, oncology, metabolic conditions, and rare diseases. The stock has gained about 83% in the last month and retail investors on Reddit’s WallStreetBets are actively loading up on Invitae Corporation (NYSE:NVTA). On August 10, Invitae Corporation (NYSE:NVTA) stock jumped 57% on the back of market beating Q2 2022 earnings and a reaffirmation of 2022 guidance.
On August 10, JPMorgan analyst Julia Qin downgraded Invitae Corporation (NYSE:NVTA) to Underweight from Neutral and withdrew her earlier price target after the company posted Q2 results in line with the latest pre-announcement and reaffirmed FY22 guidance for low double-digit percentage revenue growth. It continues to be seen if the recently announced restructuring will affect patterns over the coming few quarters and uncertainties prevail around execution over the next 12-18 months, added the analyst. She would like to see more evidence on the efficiency of the restructuring as well as the robustness of the retained businesses to be more constructive on the story.
Among the hedge funds tracked by Insider Monkey, Cathie Wood’s ARK Investment Management is the leading shareholder of the company, with 27.6 million shares worth $220.6 million. Overall, 29 hedge funds were long Invitae Corporation (NYSE:NVTA) at the end of Q1 2022, up from 24 funds in the prior quarter.
3. Bionano Genomics, Inc. (NASDAQ:BNGO)
Number of Hedge Fund Holders: 6
Share Price Gain in the Last Month as of August 12: 130.77%
Bionano Genomics, Inc. (NASDAQ:BNGO) is a California-based company that offers genome analysis software solutions. The stock has climbed a whopping 131% in the last month as of August 12. Retail investors have been piling into Bionano Genomics, Inc. (NASDAQ:BNGO) lately, and the WallStreetBets community is abuzz with gains from this trade. On August 11, the stock jumped 36% on the back of a published study regarding the use of optical genome mapping offered by Bionano Genomics, Inc. (NASDAQ:BNGO) in the analysis of certain genetically-driven disorders.
On July 18, Oppenheimer analyst Francois Brisebois assumed coverage of Bionano Genomics, Inc. (NASDAQ:BNGO) with an Outperform rating and a $12 price target given a reallocation of the firm’s analyst resources.
According to Insider Monkey’s Q1 data, Bionano Genomics, Inc. (NASDAQ:BNGO) was part of 6 hedge fund portfolios at the end of Q1 2022, compared to 11 funds in the prior quarter. Ken Griffin’s Citadel Investment Group is the leading position holder in the company, with 772,362 shares worth about $2 million.
2. Carvana Co. (NYSE:CVNA)
Number of Hedge Fund Holders: 48
Share Price Gain in the Last Month as of August 12: 148.45%
Carvana Co. (NYSE:CVNA) is an Arizona-based company that operates an e-commerce platform for buying and selling used cars in the United States. On August 4, the company reported earnings for the second quarter of 2022, posting a loss per share of $2.35 and a revenue of $3.88 billion, falling short of Wall Street consensus by $0.47 and $110 million, respectively. Despite the below consensus Q2 results, Carvana Co. (NYSE:CVNA) stock has gained 148.45% in the last month as of August 12.
Deutsche Bank analyst Emmanuel Rosner on August 8 reiterated a Hold rating on Carvana Co. (NYSE:CVNA) and lowered the price target on the shares to $42 from $54. Despite what continues to be a very tough operational backdrop, Carvana Co. (NYSE:CVNA) reported strong improvement across retail units sold and revenue in Q2, the analyst told investors in a research note. However, in the short-term, the stock will continue to trade like a “show-me” story, noted the analyst.
According to Insider’s Monkey, 48 hedge funds were bullish on Carvana Co. (NYSE:CVNA) at the end of March 2022, compared to 56 funds in the preceding quarter. Chase Coleman’s Tiger Global Management is the biggest position holder in the company, with 8.5 million shares worth over $1 billion.
Here is what Saga Partners has to say about Carvana Co. (NYSE:CVNA) in its Q1 2022 investor letter:
“I first wrote about Carvana in this 2019 write-up. I initially explained Carvana’s business, superior value proposition compared to the traditional dealership model, attractive unit economics, and how they were uniquely positioned to win the large market opportunity.
Since then, Carvana has by far exceeded even my most optimistic initial expectations. While the company did benefit following COVID in the sense that customers’ willingness to buy and sell cars through an online car dealer accelerated, the operating environment over the last two years has been very challenging. Carvana executed exceedingly well considering the shifting customer demand in what is a logistically intensive operation and what has been a tight inventory environment due to supply chain issues restricting new vehicle production.
Shares have come under pressure following their first quarter results, which reflected larger than expected losses. The quarter was negatively impacted by a combination of COVID-related logistical issues in their network that started towards the end of the fourth quarter as Omicron cases spread. Employee call off rates related to Omicron reached an unprecedented 30% that led to higher costs and supply chain bottlenecks. As less inventory was available due to these problems, it led to less selection and longer delivery times, lowering customer conversion rates.
Additionally, interest rates increased at a historically fast rate during the first quarter which negatively impacted financing gross profits. Carvana originates loans for customers and then sells them to investors at a later date. If interest rates move materially between loan origination and ultimately selling those loans, it can impact the margin Carvana earns on underwriting those loans…” (Click here to see the full text)
1. Bed Bath & Beyond Inc. (NASDAQ:BBBY)
Number of Hedge Fund Holders: 15
Share Price Gain in the Last Month as of August 12: 154.92%
Bed Bath & Beyond Inc. (NASDAQ:BBBY), an American retailer of bath and body products, has been one of the most popular trades among Redditors as of late. The stock has gained about 155% in the last month amid the meme stock frenzy. On August 9, Baird analyst Justin Kleber downgraded Bed Bath & Beyond Inc. (NASDAQ:BBBY) to Underperform from Neutral with an unchanged price target of $4. The shares have climbed 148% since July 27, the analyst told investors. The analyst said the rally has been “driven by non-fundamentally focused market participants”. With market share losses increasing and Bed Bath & Beyond Inc. (NASDAQ:BBBY) “burning cash,” the stock’s fundamental risk/reward looks unattractive, added Kleber.
Among the hedge funds tracked by Insider Monkey, John Overdeck and David Siegel’s Two Sigma Advisors is a significant stakeholder of the company, with 915,474 shares worth $20.6 million. Overall, 15 hedge funds were bullish on the stock at the end of March 2022, compared to 17 funds in the preceding quarter.
Here is what Miller Value Partners Income Strategy has to say about Bed Bath & Beyond Inc. (NASDAQ:BBBY) in its Q2 2022 investor letter:
“Bed Bath & Beyond 5.165% 08/2044 declined 67.4% in the period. Bed Bath & Beyond reported 4Q21 sales of $2.05 billion, down 22% Y/Y, missing consensus of $2.08 billion. The company lost $0.92 per share in the quarter, down from 4Q20 adjusted EPS of $0.40, below analyst expectations for EPS of $0.03. Management noted supply chain disruptions and the Omicron variant led to inventory availability challenges, which had an estimated sales impact of $175 million, or 8.5% of 4Q21 net sales, and a 400 basis points (bps) Y/Y contraction in 4Q21 adjusted gross margin to 28.8%, driven by product cost increases and higher than anticipated freight and shipping costs. Additional headwinds in the quarter included general weakness in the retail segment, highlighted by big earnings misses from Walmart and Target, along with Moody’s downgrading Bed Bath’s corporate family rating from B1 to B2. The ratings agency cited increased execution risk of the company’s strategic turnaround initiatives and ongoing supply chain issues weighing on the company’s market share and profitability going forward as the main drivers for the downgrade. However, Moody’s maintained a stable outlook for the retailer due to the financial flexibility provided by the company’s liquidity position and low level of funded debt.”
You can also take a look at 10 Buy-The-Dip Restaurant Stocks to Invest In Now and 10 Best Stocks For Inflation According to Redditors.
