In this article, we discuss 5 stocks that Cathie Wood and Steve Cohen love. If you want to see more favorite stocks of the prominent hedge fund managers, click Cathie Wood and Steve Cohen Love These 10 Stocks.
5. Twist Bioscience Corporation (NASDAQ:TWST)
ARK Investment Management’s Stake Value: $259,949,000
Point72 Asset Management’s Stake Value: $906,000
Number of Hedge Fund Holders: 16
Twist Bioscience Corporation (NASDAQ:TWST) is another favorite stock of Cathie Wood and Steve Cohen. The company sells synthetic DNA-based products. Cathie Wood’s ARK Investment Management held a $260 million position in Twist Bioscience Corporation (NASDAQ:TWST) in the first quarter of 2022, whereas Steve Cohen added the stock to his portfolio by purchasing 18,340 shares worth $906,000.
On June 30, Barclays analyst Luke Sergott reiterated an Overweight rating on Twist Bioscience Corporation (NASDAQ:TWST) but lowered the price target on the shares to $40 from $60. The company reported an in-line quarter as opposed to Barclays’ expectations for a modest outperformance, the analyst informed investors.
According to Insider Monkey’s data, 16 hedge funds were long Twist Bioscience Corporation (NASDAQ:TWST) at the conclusion of the first quarter of 2022, with collective stakes worth about $460 million. Marshall Wace LLP is the biggest shareholder of the company, with approximately 1.7 million shares valued at $83.7 million.
Here is what Baron Funds has to say about Twist Bioscience Corporation (NASDAQ:TWST) in its Q2 2021 investor letter:
“We initiated a position in Twist Bioscience Corporation, a provider of synthetic DNA. The company’s proprietary semiconductor-based platform has driven its position as the low-cost provider of DNA for a variety of high-growth applications. These include the attractive areas of synthetic biology, liquid biopsy, and antibody discovery. Of note, the antibody business has the potential to become a source of high-margin royalty streams in the future.
As further optionality, we believe Twist has a shot at disrupting the entire digital data storage industry with DNA-based storage.”
4. Twilio Inc. (NYSE:TWLO)
ARK Investment Management’s Stake Value: $827,554,000
Point72 Asset Management’s Stake Value: $1,549,000
Number of Hedge Fund Holders: 75
Twilio Inc. (NYSE:TWLO) was incorporated in 2008 and is headquartered in San Francisco, California. The company provides a cloud communications platform that promotes customer engagement within software applications. Cathie Wood’s fund owned an $827.5 million stake in Twilio Inc. (NYSE:TWLO) during the first quarter of 2022, and Steve Cohen held a $1.5 million position in the company, making it a favorite stock of the hedge fund managers.
On June 9, Scotiabank analyst Nick Altmann started coverage of Twilio Inc. (NYSE:TWLO) with an Outperform rating and a $215 price target. According to the analyst, Twilio Inc. (NYSE:TWLO)’s story “may not be as clean as it has been in the past,” but it continues to be one of the quickest-growing companies of its scale on an organic basis, the analyst told investors. It remains the market leader in Communications Platform as a Service segment, which the analyst refers to as “the fastest-growing end-market in software”.
According to Insider Monkey’s database, 75 hedge funds were bullish on Twilio Inc. (NYSE:TWLO) at the end of March 2022, compared to 80 funds in the prior quarter. David Goel and Paul Ferri’s Matrix Capital Management is one of the leading shareholders of the company, with 2.6 million shares worth $431.3 million.
Here is what Carillon Scout Mid Cap Fund has to say about Twilio Inc. (NYSE:TWLO) in its Q1 2022 investor letter:
“Twilio (NYSE:TWLO), the messaging and marketing automation software platform, sold off along with other highly valued software-as-a-service providers. Although the company management team expects continued strong growth, investors have grown concerned that demand could slow following the surge in digital communication during the pandemic.”
3. Spotify Technology S.A. (NYSE:SPOT)
ARK Investment Management’s Stake Value: $662,726,000
Point72 Asset Management’s Stake Value: $71,882,000
Number of Hedge Fund Holders: 49
Spotify Technology S.A. (NYSE:SPOT) is a Luxembourg-based company that provides audio streaming services worldwide. In the first quarter of 2022, Cathie Wood held a $662.7 million stake in Spotify Technology S.A. (NYSE:SPOT), while Steve Cohen’s Point72 Asset Management owned a $71.8 million position.
JPMorgan analyst Doug Anmuth on June 29 reiterated an Overweight rating on Spotify Technology S.A. (NYSE:SPOT) and lowered the price target on the shares to $145 from $150. The analyst lowered estimates and price targets for 26 companies in his coverage due to macro pressures, currency movements, and company-specific factors.
In Q1 2022, 49 hedge funds reported bullish positions in Spotify Technology S.A. (NYSE:SPOT), compared to 53 funds in the prior quarter. Gabriel Plotkin’s Melvin Capital Management is one of the leading shareholders of the company, with 1.5 million shares worth $233.2 million.
Here is what Baron Focused Growth Fund has to say about Spotify Technology S.A. (NYSE:SPOT) in its Q1 2022 investor letter:
“We also added to our positions in Spotify Technology S.A. The company has large addressable markets with strong brands that should allow them to take significant market share over time. We believe SPOT is appropriately financed and should generate significant cash to continue investing in their businesses for further growth.”
2. Signify Health, Inc. (NYSE:SGFY)
ARK Investment Management’s Stake Value: $381,009,000
Point72 Asset Management’s Stake Value: $23,439,000
Number of Hedge Fund Holders: 26
Signify Health, Inc. (NYSE:SGFY) is a Texas-based company that operates a healthcare platform which assists hospitals via technology and data analytics. Securities filings for Q1 2022 reveal that ARK Investment Management owned a $381 million stake in Signify Health, Inc. (NYSE:SGFY), while Point72 Asset Management held a $23.4 million position.
On June 6, Piper Sandler analyst Jessica Tassan raised the price target on Signify Health, Inc. (NYSE:SGFY) to $32 from $27 and kept an Overweight rating on the shares. The higher target reflects better consistency and working capital management within Signify Health, Inc. (NYSE:SGFY)’s ECS division given the Caravan Health acquisition, the analyst told investors in a research note.
Among the hedge funds tracked by Insider Monkey, 26 funds were long Signify Health, Inc. (NYSE:SGFY) in the March quarter, up from 16 funds in the preceding quarter. Israel Englander’s Millennium Management is one of the leading shareholders of the company, with 3.35 million shares worth about $61 million.
1. Xerox Holdings Corporation (NASDAQ:XRX)
ARK Investment Management’s Stake Value: $306,000
Point72 Asset Management’s Stake Value: $20,370,000
Number of Hedge Fund Holders: 25
Xerox Holdings Corporation (NASDAQ:XRX) is a Connecticut-based workplace technology company that offers solutions including printing presses, light production devices, IT services, professional engineering, and commercial robotic process automation. Cathie Wood owns a $306,000 stake in Xerox Holdings Corporation (NASDAQ:XRX) as of Q1 2022, while Steve Cohen holds a $20.3 million position.
On May 19, Xerox Holdings Corporation (NASDAQ:XRX) declared a quarterly dividend of $0.25 per share, in line with previous. The dividend is payable on August 1, to shareholders of record on June 30. The company delivers a dividend yield of 7.30% as of July 6. Xerox Holdings Corporation (NASDAQ:XRX) recently announced the acquisition of a UK-based print and digital marketing and communication services provider, Go Inspire, to boost its global Digital Services presence.
According to Insider Monkey’s Q1 data, 25 hedge funds were long Xerox Holdings Corporation (NASDAQ:XRX), up from 23 funds in the preceding quarter. Carl Icahn’s Icahn Capital LP is the largest shareholder of the company, with more than 32 million shares worth about $648 million.
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