In this article, we will look at the 10 stocks that Redditors of WallStreetBets are buying in September. If you want to explore more stocks that Redditors are bullish on in September, you can also take a look at Reddit’s WallStreetBets is Buying These 5 Stocks in September.
WallStreetBets became popular after a group of retail investors waged war against elite hedge funds that were shorting the brick-and-mortar video game retailer, GameStop Corp. (NYSE:GME), and aggressively bought shares of the company which resulted in billions of losses for the short sellers. The GameStop (NYSE:GME) short squeeze was a historic event that had reverberations across the entire hedge fund industry. It was at this moment, that retail investors recognized their potential and realized that they too can make money in the stock market by learning about it. WallStreetBets has grown in popularity over the past year and as of September 11, 2022, the community has over 12.5 million members.
WallStreetBets was founded by Jaime Rogozinski in 2012, an entrepreneur living in Mexico, who wanted to create a community of retail investors that can come together and discuss their trading strategies. Jaime Rogozinski was recently featured on Yahoo Finance, where he explained how WallStreetBets makes finance accessible for everyone, and how retail traders are leveraging the forum to educate themselves about the stock market. Here are some comments from the founder of WallStreetBets:
“One of the things about retail traders and WallStreetBets is that it’s a collective. It’s not an individual that says today we’re going to do this. The people come together and they collectively decide and they make efforts. It’s a democracy and sometimes people want to to go for one particular stock and it works and sometimes it doesn’t…
I think that the younger generations, the retail generation, the millennials, the gen z’s, they’re very hands-on… It’s “I’m going to do this myself. I’m going to figure out how to do this myself” and so it’s only natural for them to also want to try and take control of their finances or learn about the the stock market on their own as well. WallStreetBets, what it permits them to do, is to learn about this in a fun sort of way, speaking a language that makes it accessible. I often times say that the things the concepts that CFAs, certified financial analysts, have or you know master’s degree holders have, they just have a lot of jargon for concepts that are not actually that complicated. On WallStreetBets, you have the exact same concepts, but they have easier words or they’ll have different words that sometimes make it more cartoonish, more fun, and more meme-like…”
Jaime Rogozinski also shared his advice for retail investors, which he thinks is crucial to for their investment careers. Here is what he said:
I wouldn’t want them to avoid any of the mistakes, when it comes to learning about the market… My advice to them would be, to go ahead and lose money. There’s one thing about the stock market that no book can teach you, which is, getting control of your emotions and being able to think rationally when you’re in a trade. That only comes with experience. Oftentimes these retail traders are using smaller amounts of money so they can afford to lose a hundred percent because we’re talking about a hundred dollars or fifty dollars, they can go through, get their hands dirty, and find what it is that they like. Eventually, people will go down the same trajectory as I did and they’ll end up reading about you know, modern monetary policy, these macroeconomic concepts, that in some way or another affect the actual stock market and their investment decisions…
In addition to meme stocks such as GameStop Corp. (NYSE:GME), Redditors on WallStreetBets also analyze and invest in companies that they believe to be long-term holds or “HODLs”. Some of the top stocks that Redditors on WallStreetBets are buying in September include Altria Group, Inc. (NYSE:MO), Cameco Corporation (NYSE:CCJ), and Tesla, Inc. (NASDAQ:TSLA).
Photo by Tech Daily on Unsplash
Our Methodology
To determine the 10 stocks that Reddit’s WallStreetBets is buying this September, we scoured r/wallstreetbets and read threads and comments from September 1, and onwards, to see what Redditors are buying and why. Along with each stock, we have mentioned the hedge fund sentiment, analyst ratings, and why Redditors are bullish on it. We have ranked our picks in increasing order of the number of hedge funds that have stakes in them.
10. Uranium Energy Corp. (NYSE:UEC)
Number of Hedge Fund Holders: 8
Uranium Energy Corp. (NYSE:UEC) is involved in the exploration and processing of uranium and titanium concentrates in the United States, Canada, and Paraguay. It is one of the pure-play uranium stocks that Redditors of WallStreetBets are buying in September due to Europe’s energy crisis and the world’s changed view of generating clean energy from nuclear sources. Shares of Uranium Energy Corp. (NYSE:UEC) have gone up by 3.74% over the past month, as of September 11.
On June 15, Canaccord analyst Katie Lachapelle raised her price target on Uranium Energy Corp. (NYSE:UEC) to $6 from $5.50 and reiterated a Speculative Buy rating on the shares.
On August 22, Uranium Energy Corp. (NYSE:UEC) announced that it has successfully acquired UEX Corporation, a Canadian uranium exploration company. With this acquisition, Uranium Energy Corp. (NYSE:UEC) has become the largest uranium exploration company in North America.
At the end of the second quarter of 2022, 8 hedge funds were long Uranium Energy Corp. (NYSE:UEC) and held stakes worth $32 million in the company. Of those, Driehaus Capital was the leading shareholder with stakes worth $9 million.
In addition to Uranium Energy Corp. (NYSE:UEC), Reddit’s WallStreetBets is piling into Altria Group, Inc. (NYSE:MO), Cameco Corporation (NYSE:CCJ), and Tesla, Inc. (NASDAQ:TSLA) this September.
9. Canopy Growth Corporation (NYSE:CGC)
Number of Hedge Fund Holders: 10
Canopy Growth Corporation (NYSE:CGC) is involved in the production and distribution of cannabis for recreational and medical purposes. The company primarily operates in Canada, the United States, and Germany. Redditors on WallStreetBets are buying Canopy Growth Corporation (NYSE:CGC) as a marijuana play in September, and see significant upside for the stock. As of September 11, Canopy Growth Corporation (NYSE:CGC) has gained 10.6% over the past month.
Though retail investors are bullish on Canopy Growth Corporation (NYSE:CGC), Wall Street analysts are not. This August, Piper Sandler analyst Michael Lavery lowered his price target on Canopy Growth Corporation (NYSE:CGC) to $2.50 from $3 and maintained an Underweight rating on the shares. The analyst noted that the company’s sales trends appear to remain under pressure across its main operations. On August 8, Canaccord analyst Matt Bottomley cut his price target on Canopy Growth Corporation (NYSE:CGC) to C$2.75 from C$3.50 and reiterated a Sell rating on the shares.
At the end of the second quarter of 2022, 10 hedge funds were long Canopy Growth Corporation (NYSE:CGC) and held stakes worth $21 million in the company. Of those, Millennium Management was the most prominent investor with stakes worth $8.9 million.
8. Globalstar, Inc. (NYSE:GSAT)
Number of Hedge Fund Holders: 11
Globalstar, Inc. (NYSE:GSAT) is an American telecommunications services provider. The company operates low earth orbit satellites. Redditors have turned bullish on Globalstar, Inc. (NYSE:GSAT) after the company’s recently announced deal with Apple Inc. (NASDAQ:AAPL). On September 7, Reuters reported that Apple Inc. (NASDAQ:AAPL) is collaborating with Globalstar, Inc. (NYSE:GSAT) to use its low earth orbit satellites for the emergency message feature on the smartphone giant’s iPhone 14 series. As of September 11, Globalstar, Inc. (NYSE:GSAT) has gained 6.63% over the past month.
Wall Street has turned bullish on Globalstar, Inc. (NYSE:GSAT) after the satellite company’s collaboration with Apple Inc. (NASDAQ:AAPL). On September 8, B. Riley analyst Mike Crawford maintained a Buy rating and reiterated his $3.25 price target on Globalstar, Inc. (NYSE:GSAT) The analyst noted that the company’s satellite services business is on the path to generating positive free cash flow into the next decade.
On August 4, Globalstar, Inc. (NYSE:GSAT) announced earnings for the second quarter of fiscal 2022. The company generated a revenue of $36.8 million, up 21.5% year over year, and beat Wall Street consensus by $6.9 million.
At the close of Q2 2022, 11 hedge funds held stakes in Globalstar, Inc. (NYSE:GSAT) worth $121.2 million. As of June 30, Mudrick Capital Management owns 86.8 million shares of Globalstar, Inc. (NYSE:GSAT) and is the largest shareholder in the company.
7. Denison Mines Corporation (NYSE:DNN)
Number of Hedge Fund Holders: 12
Redditors are bullish on the nuclear trade, as the U.S. and Europe look to nuclear to speed up their transition to meet their green energy goals. Denison Mines Corporation (NYSE:DNN) is a uranium exploration and processing company based in Canada. The company’s flagship projects include the McClean Lake mine, the Midwest Uranium Project, and the Wheeler River project.
Redditors are buying Denison Mines Corporation (NYSE:DNN) and see the stock going “to the moon”. As of September 11, the stock has gained 19.83% over the past month.
Wall Street is also bullish on Denison Mines Corporation (NYSE:DNN). On August 24, TD Securities analyst Craig Hutchison resumed coverage of Denison Mines Corporation (NYSE:DNN) with a Speculative Buy rating and a price target of C$2.25. The analyst noted that the current macroeconomic situation should benefit uranium miners like Denison Mines Corporation (NYSE:DNN).
At the close of Q2 2022, 12 hedge funds were long Denison Mines Corporation (NYSE:DNN) and held stakes worth $21.9 million in the company. Of those, Titan Global Capital was the largest shareholder with stakes worth $5.9 million.
6. Tilray, Inc. (NASDAQ:TLRY)
Number of Hedge Fund Holders: 14
Tilray, Inc. (NASDAQ:TLRY) is another pure-play marijuana stock on Redditors’ watchlist this September. The WallStreetBets community is constructive on the marijuana sector and sees it as undervalued. Tilray, Inc. (NASDAQ:TLRY) is involved in the research, cultivation, and distribution of medical cannabis products worldwide. The company has four segments: Cannabis Business, Distribution Business, Beverage Alcohol Business, and Wellness Business. As of September 11, the stock is trading at a PE ratio of 8.29.
Wall Street analysts do not share the same sentiment as that of retail investors on WallStreetBets. On July 29, Benchmark analyst Mike Hickey downgraded Tilray, Inc. (NASDAQ:TLRY) to Sell from Hold and reiterated his $3 price target.
On August 17, Tilray, Inc. (NASDAQ:TLRY) announced that its medical cannabis segment has received regulatory approval to commercialize its medical cannabis products in Poland. On September 1, Tilray, Inc. (NASDAQ:TLRY) announced new additions to its Good Supply’s cannabis portfolio. The company’s new products include new high-potency concentrates Jean Guy Badder, Hash Bats in Pineapple Express, and Orange Frost Live Resin.
At the end of Q2 2022, 14 hedge funds held stakes in Tilray, Inc. (NASDAQ:TLRY) worth $12.5 million.
Like Altria Group, Inc. (NYSE:MO), Cameco Corporation (NYSE:CCJ), and Tesla, Inc. (NASDAQ:TSLA), WallStreetBets sees Tilray, Inc. (NASDAQ:TLRY) going “to the moon”.
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Disclosure. None. Reddit’s WallStreetBets is Buying These 10 Stocks in September is originally published on Insider Monkey.
