In this article, we discuss the 5 stocks that hedge funds are buying for the rest of 2021. If you want to read our detailed analysis of these stocks, go directly to Hedge Funds are Buying These 10 Stocks for the Rest of 2021.
5. Freshworks Inc. (NASDAQ:FRSH)
Number of Hedge Fund Holders in Q3: 41
Number of Hedge Fund Holders in Q2: 0
Freshworks Inc. (NASDAQ:FRSH) is a California-based software firm. In earnings results for the third quarter, posted on November 2, it beat market expectations on earnings per share and revenue by $0.06 and $5.7 million respectively.
Piper Sandler analyst Brent Bracelin recently kept an Overweight rating on Freshworks Inc. (NASDAQ:FRSH) stock and raised the price target to $53 from $50, noting the underlying strength of the firm in the enterprise customer segment.
At the end of the third quarter of 2021, 41 hedge funds in the database of Insider Monkey held stakes worth $316 million in Freshworks Inc. (NASDAQ:FRSH).
4. Independence Holding Company (NYSE:IHC)
Number of Hedge Fund Holders in Q3: 40
Number of Hedge Fund Holders in Q2: 7
Independence Holding Company (NYSE:IHC) provides life and health insurance services. The stock has soared sharply since the announcement that Geneve Holdings, another insurance firm, would be purchasing the company in a deal worth over $300 million.
In July, Independence Holding Company (NYSE:IHC) had sold off Madison National Life Insurance to Horace Mann Educators for around $172 million. The deal is expected to be closed in the first quarter of 2022.
At the end of the third quarter of 2021, 40 hedge funds in the database of Insider Monkey held stakes worth $317 million in Independence Holding Company (NYSE:IHC), up from 7 in the preceding quarter worth $39 million.
3. Toast, Inc. (NYSE:TOST)
Number of Hedge Fund Holders in Q3: 38
Number of Hedge Fund Holders in Q2: 0
Toast, Inc. (NYSE:TOST) runs a cloud-based technology platform for the restaurant industry. The company debuted on the market in September this year, pricing the IPO at $40 per share for a $20 billion evaluation. The IPO was a roaring success.
On November 10, investment advisory Canaccord raised the price target on Toast, Inc. (NYSE:TOST) stock to $64 from $60 and kept a Buy rating. Analyst David Hynes issued the ratings update.
At the end of the third quarter of 2021, 38 hedge funds in the database of Insider Monkey held stakes worth $567 million in Toast, Inc. (NYSE:TOST).
2. Victoria’s Secret & Co. (NYSE:VSCO)
Number of Hedge Fund Holders in Q3: 37
Number of Hedge Fund Holders in Q2: 0
Victoria’s Secret & Co. (NYSE:VSCO) is a specialty retailer of personal care, intimate, and beauty products. The firm beat market estimates on earnings per share for the third quarter by $0.10 but missed on revenue.
Morgan Stanley analyst Kimberly Greenberger has an Equal Weight rating on Victoria’s Secret & Co. (NYSE:VSCO) stock with a price target of $69. In a recent investor note, the analyst highlighted supply chain headwinds as one of the reasons why there was limited upside potential in the shares.
At the end of the third quarter of 2021, 37 hedge funds in the database of Insider Monkey held stakes worth $1.9 billion in Victoria’s Secret & Co. (NYSE:VSCO).
1. SomaLogic, Inc. (NASDAQ:SLGC)
Number of Hedge Fund Holders in Q3: 37
Number of Hedge Fund Holders in Q2: 0
SomaLogic, Inc. (NASDAQ:SLGC) is a Colorado-based clinical diagnostics company. It recently posted earnings for the third quarter, reporting a revenue of close to $20 million, up more than 40% compared to the revenue over the same period last year.
Cowen analyst Dan Brennan recently initiated coverage of SomaLogic, Inc. (NASDAQ:SLGC) stock with an Outperform rating and a price target of $18, noting that the platform of the firm had the potential to open up an addressable market of $100 billion.
At the end of the third quarter of 2021, 37 hedge funds in the database of Insider Monkey held stakes worth $647 million in SomaLogic, Inc. (NASDAQ:SLGC).
You can also take a peek at 9 Tech and Software Stocks to Buy According to Hamilton Helmer’s Strategy Capital and Analysts Are Downgrading These 10 Stocks.
