In this article, we discuss Richard Pzena’s 5 new stock picks. If you want our detailed analysis of Pzena’s history, investment philosophy, and hedge fund performance, go directly to Richard Pzena’s 9 New Stock Picks.
5. Pure Storage, Inc. (NYSE:PSTG)
Pzena Investment Management’s Stake Value: $449,000
Number of Hedge Fund Holders: 31
Pure Storage, Inc. (NYSE:PSTG) is an American technology company developing all-flash data storage hardware and software products. It has its own patented flash storage hardware as of 2015. Before becoming publicly listed in 2015, Pure Storage, Inc. (NYSE:PSTG) raised over $470 million in venture capital. The company is traded as a Russell 1000 Component.
Pzena Capital Management owns 23,003 shares in Pure Storage, Inc. (NYSE:PSTG), amounting to $449,000. The tech company is one of the newest additions in Pzena’s 13F portfolio.
At the end of Q2, 31 hedge funds observed by Insider Monkey were bullish on Pure Storage, Inc. (NYSE:PSTG), up from 30 in the previous quarter.
On September 29, BofA analyst Wamsi Mohan kept a Buy rating on Pure Storage, Inc. (NYSE:PSTG), owing to the firm’s long-term goals for its subscription-based business and FY25 estimates, as well as the resultant higher profit and earnings estimates in 2023. The price target was set at $32, up from $28.
4. SS&C Technologies Holdings, Inc. (NASDAQ:SSNC)
Pzena Investment Management’s Stake Value: $474,000
Number of Hedge Fund Holders: 49
The next stock on our list of Pzena’s 9 new stock picks is SS&C Technologies Holdings, Inc. (NASDAQ:SSNC), an American financial technology company specializing in software-as-a-service for the financial services industry. The Connecticut-based company has operations in the Americas, Europe, Asia, Africa, and Australia, classifying SS&C Technologies Holdings, Inc. (NASDAQ:SSNC) as a multinational firm. SS&C Technologies Holdings, Inc. (NASDAQ:SSNC) provides fintech markets with services like fund administration, wealth management accounting, and handling pension funds and insurance, via its numerous acquired subsidiaries.
Pzena holds a stake valued at $474,000 in SS&C Technologies Holdings, Inc. (NASDAQ:SSNC) as of the end of June.
The fintech company is popular among hedge funds as of the end of the second quarter. 49 funds were bullish on SS&C Technologies Holdings, Inc. (NASDAQ:SSNC), down from 54 in Q1.
Vulcan Value Partners mentioned SS&C Technologies Holdings, Inc. (NASDAQ:SSNC) in its Q4 2020 investor letter. Here is what they said:
“SS&C Technologies Holdings Inc. is the leading provider of services to the financial sector. It owns several companies including ALPS Fund Services, Advent, GlobeOp, Intralinks, Eze, and DST. It operates an array of technology offerings for the financial services industry and provides mission-critical software. We like the company’s recurring revenue, high retention rates, strong free cash flow generation, and high rates of return on capital. Regulatory pressure, the need for greater transparency, and the growth of its core asset classes have led to greater demand for its services.”
3. PRA Health Sciences, Inc. (NASDAQ:PRAH)
Pzena Investment Management’s Stake Value: $558,000
Number of Hedge Fund Holders: 43
One of Richard Pzena’s recent stock picks is PRA Health Sciences, Inc. (NASDAQ:PRAH), which is a global biopharmaceutical company, operating in more than 90 countries. PRA Health Sciences, Inc. (NASDAQ:PRAH) focuses on drug development, and conducts clinical trials locally in its 90 locations around the globe for efficient and accurate studies. PRA Health Sciences, Inc. (NASDAQ:PRAH) was recently acquired by ICON Public Limited Company (NASDAQ:ICLR), and the transaction will be completed in Q3 2021.
PRA Health Sciences, Inc. (NASDAQ:PRAH) shareholders will own 34% of the shares in the combined company, and the parent company’s stakeholders will own 66%. ICON Public Limited Company (NASDAQ:ICLR) was upgraded to Overweight from Neutral by JPMorgan analyst Tycho Peterson on September 29, with the price target at $320, up from $230. Peterson said that the rating was due to the acquisition of PRA Health Sciences, Inc. (NASDAQ:PRAH), a high quality asset with a proven track record, that will result in a very strong financial outlook for the combined company.
Richard Pzena owns 3,378 shares in PRA Health Sciences, Inc. (NASDAQ:PRAH), amounting to $558,000.
Of the hedge funds tracked by Insider Monkey at the end of June, 43 funds reported owning stakes in PRA Health Sciences, Inc. (NASDAQ:PRAH), up from 35 in Q1.
2. Vtech Holdings Limited (OTC:VTKLY)
Pzena Investment Management’s Stake Value: $1,457,000
Number of Hedge Fund Holders: N/A
Vtech Holdings Limited (OTC:VTKLY) is a Hong Kong-based global market leader in electronic learning products for children, and the largest manufacturer of residential phones in the United States. Vtech Holdings Limited (OTC:VTKLY) has been in business since 1976, and has mastered the craft of fun and innovative educational toys and cordless phones that elevate the user experience. With manufacturing and R&D facilities in mainland China, Malaysia, Mexico, Germany, Canada, and the US, Vtech Holdings Limited (OTC:VTKLY) is afforded the best technology upgrades and an efficient cost structure to stay abreast with the competition.
Richard Pzena recently invested in Vtech Holdings Limited (OTC:VTKLY), purchasing 139,730 shares valued at $1.45 million. The investment will result in a huge payoff for Pzena’s clients, since Vtech Holdings Limited (OTC:VTKLY) is a dividend stock, with a yield of 10.88%.
1. Huntington Bancshares Incorporated (NASDAQ:HBAN)
Pzena Investment Management’s Stake Value: $48,063,000
Number of Hedge Fund Holders: 33
Ranking first on our list of Richard Pzena’s 9 new stock picks is Huntington Bancshares Incorporated (NASDAQ:HBAN), an American bank holding company from Ohio. Huntington Bancshares Incorporated (NASDAQ:HBAN) is known for being the second largest originator of Small Business Administration loans. The Huntington National Bank is a wholly owned subsidiary of Huntington Bancshares Incorporated (NASDAQ:HBAN), operating 920 branches across the US. Huntington Bancshares Incorporated (NASDAQ:HBAN) is traded as a S&P 500 Component.
Pzena’s largest investment recently was in Huntington Bancshares Incorporated (NASDAQ:HBAN). He purchased stocks worth $48.06 million in the American bank holding company. Ken Griffin’s Citadel Investment Group is the leading stakeholder in Huntington Bancshares Incorporated (NASDAQ:HBAN), with a stake of $171.3 million as of the end of June.
Out of the 873 hedge funds monitored by Insider Monkey, 33 funds were long Huntington Bancshares Incorporated (NASDAQ:HBAN) at the end of Q2, up from 27 in the previous quarter.
On September 7, Baird analyst David George reiterated his Outperform rating on Huntington Bancshares Incorporated (NASDAQ:HBAN), with a price target of $17.
You can also take a look at 10 Stocks to Buy According to James Mitarotonda’s Barington Capital and Analysts are Cutting Price Targets of These 10 Stocks.
