In this article, we discuss the 10 stocks to consider in the portfolio of Jim Langevin. If you want to skip our detailed analysis of these stocks, go directly to Jim Langevin Stock Portfolio: 5 Stocks To Consider.
Jim Langevin is a politician hailing from Rhode Island. He has been serving as a member of the US House of Representatives from the second congressional district of his hometown since 2001. He is a member of the Democratic Party. After his long stint in politics, Langevin announced in January that he would not be seeking re-election. The stock trading activities of the lawmaker have raised eyebrows as he serves on two important House committees on armed services and homeland security.
A cursory glance at his securities filings over the past year, mandatory under law, shows that Langevin made 80 trades. 44 were related to buying and 36 involved selling. The buys were worth more than $1 million but the stocks sold during this time were worth just a little bit more. Opponents of Jim Langevin have accused him of buying Chinese stocks and profiting from them while being publicly critical of the Chinese government and the economic policies of Beijing.
Some of the top stocks to consider in the portfolio of Jim Langevin include Meta Platforms, Inc. (NASDAQ:FB), PayPal Holdings, Inc. (NASDAQ:PYPL), and Netflix, Inc. (NASDAQ:NFLX), among others discussed in detail below.
Our Methodology
The stocks listed below were picked from the Periodic Transaction Report(s) that Jim Langevin is obliged to file. It is important to clarify that the stocks listed below were picked from the public record of investments Langevin and his family have made in the past few months. The purchases may not have been made by Langevin himself but only disclosed on behalf of his family.
Hedge fund sentiment was included as a classifier as well. The hedge fund sentiment around each stock was calculated using the data of 867 hedge funds tracked by Insider Monkey.
US House Office of Photography – http://langevin.house.gov/media-center/press-kit
Jim Langevin Stock Portfolio: Stocks To Consider
10. Rivian Automotive, Inc. (NASDAQ:RIVN)
Number of Hedge Fund Holders: N/A
Rivian Automotive, Inc. (NASDAQ:RIVN) makes and sells electric adventure vehicles. Latest filings from Jim Langevin show that on January 21 the lawmaker purchased CALL options on Rivian Automotive, Inc. (NASDAQ:RIVN) stock worth around $1,000-$15,000 with a strike price of $100. The options expire on March 18 this year.
On February 3, Morgan Stanley analyst Adam Jonas maintained an Overweight rating on Rivian Automotive, Inc. (NASDAQ:RIVN) stock with a price target of $147, noting that the firm was preferred over competitor Lucid by 87% of investors in a recent bank survey.
Just like Meta Platforms, Inc. (NASDAQ:FB), PayPal Holdings, Inc. (NASDAQ:PYPL), and Netflix, Inc. (NASDAQ:NFLX), Rivian Automotive, Inc. (NASDAQ:RIVN) is one of the growth stocks on the radar of elite investors.
In its Q4 2021 investor letter, Greenlight Capital, an asset management firm, highlighted a few stocks and Rivian Automotive, Inc. (NASDAQ:RIVN) was one of them. Here is what the fund said:
“We made a material gain in Rivian (RIVN) as a result of its IPO. We met RIVN’s sponsors in 2018 as part of our continued work on electric vehicles, and were favorably impressed by their technology and discipline. In mid-2020, we made a small investment at a $10 billion valuation. In November, Rivian Automotive, Inc. (NASDAQ:RIVN) went public at a $70 billion valuation and traded to a peak valuation of $162 billion. We hedged in the options market to lock in a minimum valuation of about $120 billion for a good chunk of our position. While we are believers in the company, we did not have material exposure at year end.”
9. Generac Holdings Inc. (NYSE:GNRC)
Number of Hedge Fund Holders: 39
Generac Holdings Inc. (NYSE:GNRC) markets power generation equipment. There is positive hedge fund sentiment around the company. At the end of the third quarter of 2021, 39 hedge funds in the database of Insider Monkey held stakes worth $725 million in Generac Holdings Inc. (NYSE:GNRC), up from 38 in the preceding quarter worth $524 million.
A PTR dated February 8 reveals that Jim Langevin purchased CALL options on Generac Holdings Inc. (NYSE:GNRC) stock in four separate transactions in January. The first two were made on January 4 and the second two on January 21. The CALL options were purchased with a strike price of $320 and $270. The four trades were worth around $1,000-$15,000 each.
In its Q2 2021 investor letter, Polen Capital, an asset management firm, highlighted a few stocks and Generac Holdings Inc. (NYSE:GNRC) was one of them. Here is what the fund said:
“On a securities level, our top contributors (includes) Generac. All these businesses performed well fundamentally. For Generac, the leading provider of residential standby generators, fundamentals remained strong, but there was little to highlight from the quarter.”
8. Roku, Inc. (NASDAQ:ROKU)
Number of Hedge Fund Holders: 57
Roku, Inc. (NASDAQ:ROKU) owns and runs a streaming platform. Jim Langevin disclosed in June last year that he purchased and sold Roku stock in May 2021. The purchase included CALL options on shares worth $1,000-$15,000 with a strike price of $280. He also sold a stake similar in value on May 7.
Hedge funds have been offloading Roku, Inc. (NASDAQ:ROKU) as the shares go on a downward spiral. At the end of the third quarter of 2021, 57 hedge funds in the database of Insider Monkey held stakes worth $2.8 billion in Roku, Inc. (NASDAQ:ROKU), down from 61 in the preceding quarter worth $5.6 billion.
In its Q4 2020 investor letter, RGA Investment Advisors, an asset management firm, highlighted a few stocks and Roku, Inc. (NASDAQ:ROKU) was one of them. Here is what the fund said:
“For two years running, Roku has now been either the largest or second largest driver of performance in portfolios. When we purchased Roku, obviously we never expected such a phenomenal outcome, so quickly—these things can only be chalked up to luck. However, we do think luck is the residue of design and Roku, Inc. (NASDAQ:ROKU) had all the hallmarks ex ante as the kind of position that could do something wildly spectacular. One of the first signs in seeing Roku’s potential was the sharp contrast between our modeled expectations for the top line of the business and where the consensus expectations were. This was the Shopify setup all over again. By this time, we had added an additional tool to our analytical framework, and this helped further enforce our conviction that not only was it we who were right about where things should go, but also that the very existence of this gap could be a potent source of fuel behind the stock as the world came around to our expectation. Specifically, we had become increasingly comfortable building lifetime value analyses of companies, and notably, when we bought Roku, Inc. (NASDAQ:ROKU), we were quite confident that with only modest annual increases in average revenue per user (ARPU), and a 5-year average customer lifespan, we were buying the company for its existing customer base and nothing more. In other words, the growth at Roku was entirely free at the prevailing prices we bought into.”
7. Zillow Group, Inc. (NASDAQ:Z)
Number of Hedge Fund Holders: 67
Zillow Group, Inc. (NASDAQ:Z) operates as a digital real estate firm. There are concerns around the firm on Wall Street as growth stocks undergo a broad correction in value. At the end of the third quarter of 2021, 67 hedge funds in the database of Insider Monkey held stakes worth $4.2 billion in Zillow Group, Inc. (NASDAQ:Z), down from 76 in the preceding quarter worth $5.2 billion.
Latest data shows that Langevin purchased CALL options on Zillow Group, Inc. (NASDAQ:Z) stock worth somewhere between $1,000 and $15,000 with a strike price of $60 on January 21. The transaction in this regard was disclosed in early February.
In its Q1 2021 investor letter, Baron Funds, an asset management firm, highlighted a few stocks and Zillow Group, Inc. (NASDAQ:Z) was one of them. Here is what the fund said:
“Zillow Group, Inc. (NASDAQ:Z) operates leading U.S. real estate sites, a mortgage marketplace, and the Zillow Offers home-buying business. Shares fell during the quarter in concert with the broader rotation out of technology-based stocks despite the company’s continued inflection in mortgages revenue, strong profitability in its core business, and a positive real estate outlook as Zillow Group, Inc. (NASDAQ:Z) builds out its iBuying ecosystem. In our view, Zillow is a leader in the large online real estate advertising market with substantial upside from mortgages and Offers, and we remain investors.”
6. Block, Inc. (NYSE:SQ)
Number of Hedge Fund Holders: 98
Block, Inc. (NYSE:SQ) is a payments technology firm. Mandatory filings from Langevin reveal that the lawmaker purchased CALL options on Block, Inc. (NYSE:SQ) stock worth around $1,000-$15,000 with a strike price of $145 on January 21. The transaction in this regard was disclosed on February 7.
Block, Inc. (NYSE:SQ) has witnessed a flurry of hedge fund activity in recent months. At the end of the third quarter of 2021, 98 hedge funds in the database of Insider Monkey held stakes worth $8 billion in Block, Inc. (NYSE:SQ), up from 94 in the preceding quarter worth $10 billion.
Along with Meta Platforms, Inc. (NASDAQ:FB), PayPal Holdings, Inc. (NASDAQ:PYPL), and Netflix, Inc. (NASDAQ:NFLX), Block, Inc. (NYSE:SQ) is one of the stocks that institutional investors are buying.
In its Q1 2021 investor letter, RiverPark Funds, an asset management firm, highlighted a few stocks and Block, Inc. (NYSE:SQ) was one of them. Here is what the fund said:
“We established a position in leading Financial Technology provider Square during the quarter. Through one integrated system, SQ is a hybrid of two businesses: its Seller Business (charging small and medium-sized businesses about 3% for transaction payment processing, plus other services such as instant funds access, and software for everything from customer engagement to payroll), and its Cash App (originally for person-to-person cash transfers and now a growing digital financial services provider for consumers).
The combined business has grown gross profit at a 37% CAGR over the past five years to $2.7 billion (due to pass through costs, gross profit is more reflective of top-line growth) and we believe that the company has an enormous long-term runway, as it has less than a 2% share of a more than $160 billion market. It is our view that the company’s Cash App (which has grown
from nothing in 2015 to $1.2 billion gross profit last year) has a particularly large opportunity with its powerful ecosystem of digital financial services including digital wallets, direct deposits, stock trading, bitcoin trading, and business and tax services, which are all relatively new. The vast majority of Cash App’s more than 36 million users are younger and, importantly, are willing to replace their bank and other financial services accounts with the app.
We estimate that the company can grow its gross profit more than 30% and EBITDA more than 50% annually for the foreseeable future, and while most of the company’s current profit is from its Seller Business, we believe most of Square’s future value will be from its Cash App business.”
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Disclosure. None. Jim Langevin Stock Portfolio: 10 Stocks To Consider is originally published on Insider Monkey.
