These 5 Stocks Can Crash After Federal Reserve’s Latest Rate Hike

2. Bentley Systems, Incorporated (NASDAQ:BSY)

Debt-to-Equity Ratio: 3.68

Number of Hedge Fund Holders: 12

Bentley Systems, Incorporated (NASDAQ:BSY) is a software development company that develops and provides support for computer software used in the design, construction, and operation of infrastructure. Bentley Systems, Incorporated (NASDAQ:BSY) is highly overvalued. As of September 19, the stock is trading at a PE multiple of 100x.

On August 9, Bentley Systems, Incorporated (NASDAQ:BSY) released earnings for the fiscal second quarter of 2022. The company generated a revenue of $268 million and missed expectations by $0.81 million. According to the company’s balance sheet, Bentley Systems, Incorporated (NASDAQ:BSY) has total debt of $1.88 billion, which brings its debt-to-equity ratio to 3.68. As of September 19, the stock has plummeted 31% year to date and can tank further if the Fed makes it harder to access cheap credit.

On August 16, Wolfe Research analyst Gal Munda initiated coverage of Bentley Systems, Incorporated (NASDAQ:BSY) with an Outperform rating and a $48 price target.

On September 14, Gregory Bentley, CEO of Bentley Systems Incorporated (NASDAQ:BSY), disclosed that he sold 0.16 million shares of the company on September 12. The transaction was valued at $6.2 million.

Insider Monkey found 12 hedge funds having stakes in Bentley Systems, Incorporated (NASDAQ:BSY) at the end of Q2 2022. The total value of these stakes amounted to $95 million, up from $92 million a quarter ago with 18 positions.

As of June 30, Durable Capital Partners is the largest shareholder in Bentley Systems, Incorporated (NASDAQ:BSY) and owns more than 2 million shares of the company. The investment covers 0.85% of the fund’s 13F portfolio.