In this article, we take a look at the top 5 stock picks of Adam Usdan’s Trellus Management. If you are interested in reading about the history and investment philosophy of Trellus Management, you can go directly to Top 10 Stock Picks of Adam Usdan’s Trellus Management.
5. Aspen Aerogels Inc (NYSE:ASPN)
Trellus Management’s Stake Value: $4.857 million
Percentage of Trellus Management’s 13F Portfolio: 3.53%
Number of Hedge Fund Holders as of Q2 2021: 20
Founded in 2001, Aspen Aerogels Inc (NYSE: ASPN) operates in the energy industry in the US. The company uses aerogel technology to create building materials, battery components, and energy infrastructure.
On October 28, Aspen Aerogels Inc (NYSE: ASPN) announced its Q3 revenue to be $30.38 million which beat estimates by $2.75 million and displayed 25.6% year-over-year growth. Similarly, the Q3 EPS of -$0.24 beat the estimated EPS by $0.02. On October 29, Christopher Souther, an analyst at B. Riley Financial, Inc., raised the price target on Aspen Aerogels Inc (NYSE: ASPN) from $53 to $60 and maintained a “Buy” rating on its shares.
4. American Tower Corporation (NYSE:AMT)
Trellus Management’s Stake Value: $5.043 million
Percentage of Trellus Management’s 13F Portfolio: 3.67%
Number of Hedge Fund Holders as of Q2 2021: 55
American Tower Corporation (NYSE: AMT), headquartered in Boston, Massachusetts is a real estate investment company that owns and operates communications infrastructure. The company was founded in 1995 and presently offers its services in 25 countries around the globe.
Adam Usdan’s Trellus Management holds 19,000 shares in American Tower Corporation (NYSE: AMT) worth over $5 million, representing 3.67% of its portfolio. Ken Fisher’s Fisher Asset Management holds the biggest stake in American Tower Corporation (NYSE: AMT), with over 1.9 million shares worth more than $523 million.
On October 12, Andrew Rosivach, an analyst at Wolfe Research, assumed the coverage of American Tower Corporation (NYSE: AMT) with the rating “Peer Perform” and set a price target of $271.
Qualivian Investment Partners, an investment management firm, published its Q3 2021 investor letter in which it provided its stance about American Tower Corporation (NYSE: AMT). Here is what the investment firm stated related to American Tower Corporation (NYSE: AMT):
“What Attracts Us
Superior Business:
• High barriers to entry resulting from low bargaining power of suppliers (land owners) and customers (wireless companies). Neither can find reasonable substitutes for existing cell towers. Combined with low possibility of disruption, this results in a business oligopoly and pricing power.
• Stable business with consistent high returns on equity, low maintenance capital required, and strong cash generation.
− Ten-year, non-cancelable contracts with built in pricing escalators and high renewal rates
− 1%-2% churnSuperior Reinvestment Opportunities:
• Strong growth for the foreseeable future due to increasing demand for wireless data usage, resulting in wireless carriers Capex equipment spend on existing and new towers.
• Low maintenance capital expenditure requirements; most of capital expenditure is for growthSuperior Management / Capital Allocation:
• Capital reinvested back in business has had returns well above cost of capital
• Company has purchased stock opportunistically…” (Click here to see the full text)
3. American Water Works Company, Inc. (NYSE:AWK)
Trellus Management’s Stake Value: $8.722 million
Percentage of Trellus Management’s 13F Portfolio: 6.35%
Number of Hedge Fund Holders as of Q2 2021: 30
American Water Works Company, Inc. (NYSE: AWK) works in the American public utility sector and provides its services in both Canada and the United States. 51,600 of the company’s shares are held by Adam Usdan’s Trellus Management, which comprise 6.35% of the fund’s portfolio.
On November 3, Insoo Kim, an analyst at Goldman Sachs, downgraded the rating of American Water Works Company, Inc. (NYSE: AWK) to “Neutral” from its previous position of “Buy”. Furthermore, Insoo Kim lowered the price target of the company from $191 to $177. On November 2, American Water Works Company, Inc. (NYSE: AWK) announced its earnings for Q3 2021. It posted revenues of $1.09 billion, which fell short of the estimated revenue by $130 million. Additionally, the EPS was $1.53, which missed estimates by $0.01.
2. Vertex Energy Inc (NASDAQ:VTNR)
Trellus Management’s Stake Value: $11.665 million
Percentage of Trellus Management’s 13F Portfolio: 8.49%
Number of Hedge Fund Holders: 13
Headquartered in Houston, Texas, Vertex Energy Inc (NASDAQ: VTNR) is an environmental sciences company. It recycles industrial waste such as petroleum products and converts them into specialty products for further commercial use.
On November 9, Vertex Energy Inc (NASDAQ: VTNR) announced its earnings for the third quarter of 2021. The Q3 2021 revenue was $28.97 million, which showed year-over-year growth of 78.3%. Similarly, the EPS of Q3 2021 was $0.11, which beat estimates by $0.07.
On November 10, Eric Stine, an analyst at Craig-Hallum Capital Group LLC, lowered the price target on Vertex Energy Inc (NASDAQ: VTNR) from $25 to $18, yet kept a “Buy” rating on the company’s shares to reflect the company’s recently announced earnings.
Wasatch Global Investors, an investment management firm, published its “Wasatch Micro Cap Value Fund” Q2 2021 investor letter in which the investment company shares its stance about Vertex Energy Inc (NASDAQ: VTNR). Here is what the firm said about Vertex Energy Inc (NASDAQ: VTNR):
“The top contributor to Fund performance for the second quarter was Vertex Energy, Inc. (VTNR), a middle-market consolidator, refiner and rerefiner of distressed petroleum products such as used oil, transmix and off-specification commercial chemical products. The stock soared after the company agreed to purchase an Alabama refinery from Royal Dutch Shell for $75 million. According to comments by CEO Benjamin Cowart in the deal announcement, this was the “largest, most significant transaction ever completed by Vertex, one that positions us to become a leading regional supplier of both renewable and conventional products.” After another $85 million in investments to convert the hydrocracking unit to produce renewable diesel, Mr. Cowart believes the Alabama refinery could generate $3 billion in revenue and $400 million in gross profit as soon as 2023. While we admire Mr. Cowart’s optimism, we think the stock price has gotten ahead of company fundamentals—partially due to overexuberance regarding “green energy”—and we sold our position in Vertex.”
1. Vicor Corp (NASDAQ:VICR)
Trellus Management’s Stake Value: $17.433 million
Percentage of Trellus Management’s 13F Portfolio: 12.7%
Number of Hedge Fund Holders: 13
Vicor Corp (NASDAQ: VICR) is a power technology company that manufactures and supplies modular power components.
The company posted revenues of $84.9 million on October 21, which demonstrated a year-on-year growth of 8.7%, yet missed the estimated revenue by $13.27 million. Vicor Corp (NASDAQ: VICR)’s Q3 2021 EPS of $0.29 also missed estimates by $0.14. Despite these results, Richard Shannon, an analyst at Craig-Hallum, maintained a “Buy” rating on the company and set a $200 price target on Vicor Corp (NASDAQ: VICR) on October 22. According to the analyst, the results were due to a supply constraint, which was a temporary event.
You can also take a peek at 10 Best Tech ETFs to Buy According to Reddit and Forget AMC and Gamestop: 10 New Stocks Reddit’s WallStreetBets Is Buying.
