In this article, we will discuss the top 5 stocks being bought by George Baxter’s Sabrepoint Capital as of the second quarter of 2021. If you want to read our detailed analysis of Baxter’s history, investment philosophy, and hedge fund performance, go directly to George Baxter’s Sabrepoint Capital is Buying UPWK, MSFT, and More.
5. Lyft, Inc. (NASDAQ:LYFT)
Baxter’s Stake Value: $18,144,000
Percentage of George Baxter’s 13F Portfolio: 5.71%
Number of Hedge Fund Holders: 43
One of George Baxter’s popular stock picks is Lyft, Inc. (NASDAQ: LYFT). It is a mobile ride-hailing service for cars, motorized scooters, and a bicycle-sharing system – various services available in a few clicks. It deals not only with ride-hailing services and food delivery for its customer base but also serves as an opportunity to earn money as a hired Lyft driver.
As per the latest data, Sabrepoint Capital owned 300,000 shares in Lyft, Inc. (NASDAQ: LYFT) at the end of the second quarter of 2021, worth $18.1 million. Out of the hedge funds being tracked by Insider Monkey, Alkeon Capital Management is the leading investor in the company with a stake worth $286.5 million.
ClearBridge Investments mentioned Lyft, Inc. (NASDAQ: LYFT) in its Q2 2021 investor letter. Here’s what the investment management firm said:
“We also added to our disruptors exposure in the second quarter with the purchase of Lyft, a leading, U.S. focused ride-hailing business. Lyft operates in a rational duopoly with Uber and has been able to maintain consistent 30%–35% market share for the past several years. The company should be a key beneficiary of the U.S. reopening, with a post-COVID-19 recovery in rideshare demand driving an acceleration in volumes and revenue. We also see considerable runway for growth beyond this rebound, as rideshare remains underpenetrated. Lyft’s ability to weather a period of significant demand destruction in 2020 is encouraging and we see opportunity for margin expansion ahead. Despite volatility created by ongoing labor negotiations, we see the potential for new, state-level legislation creating collective bargaining rights for gig economy workers to provide greater certainty around industry labor costs, with increases that should be manageable.”
4. SEMrush Holdings, Inc. (NYSE:SEMR)
Baxter’s Stake Value: $18,433,000
Percentage of George Baxter’s 13F Portfolio: 5.8%
Number of Hedge Fund Holders: 7
SEMrush Holdings, Inc. (NYSE: SEMR) is a digital SaaS platform that caters to online visibility management and content marketing strategies. The latest data shows that Sabrepoint Capital owned 800,744 shares in the company at the end of the second quarter of 2021, worth $18.4 million.
As of the second quarter of 2021, 7 hedge funds in the database of Insider Monkey reported owning shares worth $111.4 million in SEMrush Holdings, Inc. (NYSE: SEMR), compared to 20 in the previous quarter worth $57.5 million. With a stake of over $55.6 million, Ancient Art (Teton Capital) is the leading investor in the company.
On October 10, investment advisory Stifel raised the price target on SEMrush Holdings, Inc. (SEMR) stock from $20 to $25 and maintained a Hold rating. The rating was issued by J.Parker, an analyst at the advisory, who described SEMrush Holdings, Inc. (SEMR) as “a leader in online visibility management” but believed the market to be crowded.
Clearbridge Investments shared its insights on the company in its Q1 2021 investor letter. Here’s what the investment management firm said:
“We established seven new positions during the quarter, (including SEMrush) largely financed through trims in existing holdings whose market values have risen. Four of the additions play roles in the accelerating digital transformation of the sales, marketing and customer development processes. SEMrush, in the IT sector, is a software provider that help clients optimize their marketing spend across digital search and social media platforms.”
3. Walker & Dunlop, Inc. (NYSE:WD)
Baxter’s Stake Value: $20,354,000
Percentage of George Baxter’s 13F Portfolio: 6.41%
Number of Hedge Fund Holders: 11
Walker & Dunlop, Inc. (NYSE: WD) is a real estate finance company that aids bankers and brokers dealing with commercial property. It provides finance and investment services to owners of real estate.
As per the latest 13F filings, Sabrepoint Capital owned 195000 shares in the company at the end of the second quarter of 2021, worth over $20.3 million. Walker & Dunlop, Inc. (NYSE: WD) has a dividend yield of 1.61% and has seen an annual increase of around $0.2 in its dividend per annum from the year 2018 to 2020. The company’s forward annual payout is $2.00. Moreover, for the second quarter of 2021, Walker & Dunlop, Inc. (NYSE: WD) recorded EPS of $1.73, missing the analyst’s estimates by $0.32.
On October 7, investment advisory JMP securities maintained an Outperform rating on Walker & Dunlop, Inc. (NYSE: WD) stock and raised the price target from $130 to $140, citing the company’s Q2 results and the recent acquisition of Alliant Capital with an enterprise value of $696 million.
As of the second quarter of 2021, Royce & Associates is the leading investor in Walker & Dunlop, Inc. (NYSE: WD). Overall, 11 funds out of the 873 tracked by Insider Monkey were bullish on Walker & Dunlop, Inc. (NYSE: WD), compared to 19 in the preceding quarter. The total value of these stakes is over $78.4 million.
2. Upwork Inc. (NASDAQ:UPWK)
Baxter’s Stake Value: $20,984,000
Percentage of George Baxter’s 13F Portfolio: 6.61%
Number of Hedge Fund Holders: 26
Upwork is a digital platform that connects freelancers, agencies, and talent with businesses looking for freelance services. Initially known as Elance-oDesk, the company rebranded itself in 2015 as Upwork Global Inc. and is one of the largest growing networks of freelancer communities in the world. Sabrepoint Capital holds 360,000 shares in Upwork Inc. (NASDAQ: UPWK) worth over $20.98 million, representing 6.61% of their investment portfolio.
On October 1, Bank of America initiated coverage of Upwork Inc. (NASDAQ: UPWK) with a price target of $65 and a Buy rating, noting the company’s “strong” revenue base and the expansion opportunity amidst the pandemic. Keeping in view the circumstances, Upwork Inc. (NASDAQ: UPWK) launched Talent Scout, a service connecting enterprises with pre-vetted employees by the Upwork specialist recruiters.
Investment firm Spree Capital Advisers shared its stance on Upwork Inc. (NASDAQ: UPWK) in its Q4 2020 investor letter. Here’s what the firm said:
“Early in the fourth quarter we meaningfully increased our position size in Upwork (UPWK). Upwork is a global employment marketplace that enables businesses to vet, hire, and manage talent as part of their distributed workforce. Upwork facilitates labor and demand side connectivity on a global scale by providing the infrastructure to create trust and to streamline talent sourcing, contracting, analysis and payment. Freelancers benefit from having a reputation ranking system that feeds their marketing channels, allowing them to have access to quality, flexible work and on time compensation. Businesses on the demand side benefit by having extensive access to specialized talent, enabling faster and more cost effective hiring, and by having the strategic optionality inherent in the ability to flex a portion of their workforce based on changing demand requirements…. Click to continue reading.”
The company saw a decrease in hedge fund sentiment recently. As of the second quarter of 2021, 26 hedge funds out of the 873 funds tracked by Insider Monkey held stakes in Upwork Inc. (NASDAQ: UPWK) worth $427.8 million, down from 32 in the preceding quarter worth $530.9 million.
1. Eventbrite, Inc. (NYSE:EB)
Baxter’s Stake Value: $23,750,000
Percentage of George Baxter’s 13F Portfolio: 7.48%
Number of Hedge Fund Holders: 25
Founded in 2006, Eventbrite, Inc. (NYSE: EB) is virtually designed as an e-service platform for ticketing and event management services. Post-pandemic, the website has garnered attention and a larger audience as a place to connect global audiences via online platforms and digital tools/apps like Zoom for virtual events.
13F Filings revealed that George Baxter’s Sabrepoint Capital owned 1.25 million shares in Eventbrite, Inc. (NYSE: EB) at the end of the second quarter of 2021, worth over $23.7 million.
Post-COVID, the virtual events’ hosted via the site increased with a 241% paid ticketing volume rise. Julia Hartz, Eventbrite’s CEO, and co-founder stated that the strong financial results in the second quarter of 2021 reflected demand for the live gatherings of social events, garnering a global audience. The company plans to invest in product development to cater to the needs of the creators and audiences for long-term growth.
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