Here’s a Reason to Buy New Relic (NEWR) Shares

ClearBridge Investments, an investment management firm, published its “SMID Cap Growth Strategy” fourth quarter 2021 investor letter – a copy of which can be downloaded here. During the fourth quarter, the ClearBridge SMID Cap Growth Strategy outperformed its Russell 2500 Growth Index benchmark. On an absolute basis, the Strategy had gains across seven of the 10 sectors in which it was invested during the quarter (out of 11 sectors total), with the industrials sector the leading contributor, while the consumer discretionary and IT sectors were the primary detractors.  Spare some time to check the fund’s top 5 holdings to have a clue about their top bets for 2022.

ClearBridge Investments SMID Cap Growth Strategy, in its Q4 2021 investor letter, mentioned New Relic, Inc. (NYSE:NEWR) and discussed its stance on the firm. Founded in 2007, New Relic, Inc. (NYSE:NEWR) is a San Francisco, California-based software company with a $4.5 billion market capitalization, and is currently spearheaded by its CEO, Bill Staples. New Relic, Inc. (NYSE:NEWR) delivered a -37.36% return since the beginning of the year, while its 12-month returns are up by 14.93%. The stock closed at $68.97 per share on March 28, 2022.

Here is what ClearBridge Investments SMID Cap Growth Strategy has to say about New Relic, Inc. (NYSE:NEWR) in its Q4 2021 investor letter:

“New Relic, which develops observability software including application monitoring, infrastructure and network monitoring capabilities, was another strong contributor. After a long evolution to a consumption-based pricing plan and rejuvenation of its tech platform, New Relic shares were boosted by quarterly results that topped expectations on strength across a number of metrics including consumption and churn.”

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Our calculations show that New Relic, Inc. (NYSE:NEWR) failed to obtain a mark on our list of the 30 Most Popular Stocks Among Hedge Funds. New Relic, Inc. (NYSE:NEWR) was in 37 hedge fund portfolios at the end of the fourth quarter of 2021, compared to 30 funds in the previous quarter. New Relic, Inc. (NYSE:NEWR) delivered a -37.33% return in the past 3 months.

In January 2022, we published an article that includes New Relic, Inc. (NYSE:NEWR) in the Top 5 Stock Picks of Mick Hellman’s HMI Capital. You can find more than 100 investor letters from hedge funds and prominent investors on our hedge fund investor letters 2021 Q4 page.

Disclosure: None. This article is originally published at Insider Monkey.