by Hamna Asim
Resource: Finance Yahoo
The New York Times reported that the S&P 500 has now posted five consistent weeks of declines, marking the index’s largest streak of losses since June 2011. Some Wall Street experts remain optimistic about the stock market, despite the sharp benchmark lows driven by the raging inflation, soaring oil prices, and global supply tightness.
Given the continuous interest of investors in the stock market despite uncertain macro conditions and ongoing volatility, it is prudent to seek out the most active stocks on Wall Street to see what the masses are pouring into.
Most Active Stocks To Buy Now
3. Apple Inc. ($Apple(AAPL)$ )
Number of Hedge Fund Holders: 134
Apple Inc. (NASDAQ:AAPL) is perhaps one of the most actively traded stocks on the market, with a volume of 141 million. Apple Inc. (NASDAQ:AAPL), the American tech giant, posted above consensus earnings for the first fiscal quarter of 2022, with an EPS of $1.52 and a revenue of $97.28 billion.
Morgan Stanley analyst Katy Huberty reiterated an Overweight rating and a $195 price target on Apple Inc. (NASDAQ:AAPL) shares, stating that based on data from Sensor Tower, she estimates that App Store net revenue growth accelerated to 8% year-over-year in April from March quarter growth of 6% year-over-year. The analyst’s 15% year-over-year June quarter forecast for App Store growth remains unchanged.
According to Insider Monkey’s fourth quarter data, Apple Inc. (NASDAQ:AAPL) was found in the public stock portfolios of 134 hedge funds, compared to 120 funds in the earlier quarter. The total stakes in Q4 amounted to $186 billion, up from $146 billion in Q3. Warren Buffett’sBerkshire Hathawayis the leading shareholder of the company, with more than 887 million shares worth $157.5 billion.
Hereis what Berkshire Hathaway has to say about Apple Inc. (NASDAQ:AAPL) in its Q4 2021 investor letter:
“Apple Inc. (NASDAQ:AAPL) – our runner-up Giant as measured by its year end market value – is a different sort of holding. Here, our ownership is a mere 5.55%, up from 5.39% a year earlier. That increase sounds like small potatoes. But consider that each 0.1%of Apple’s 2021 earnings amounted to $100 million. We spent noBerkshire funds to gain our accretion. Apple’s repurchases did the job. It’s important to understand that only dividendsfrom Apple are counted in the GAAP earnings Berkshire reports – and last year, Apple paid us $785 million of those. Yet our “share” of Apple’s earnings amounted to a staggering $5.6 billion. Much of what the company retained was used to repurchase Apple shares, an act we applaud. Tim Cook, Apple’s brilliant CEO, quite properly regards users of Apple products as his first love, but all of his other constituencies benefit from Tim’s managerial touch as well.”
2. NVIDIA Corporation ($NVIDIA Corp(NVDA)$ )
Number of Hedge Fund Holders: 110
NVIDIA Corporation (NASDAQ:NVDA) was incorporated in 1993 and is headquartered in Santa Clara, California. NVIDIA Corporation (NASDAQ:NVDA) offers expertise in graphics, cloud computing, and networking solutions in the United States, Taiwan, China, and international markets. It is one of the most actively traded stocks, with a volume of 67 million.
Morgan Stanley analyst Joseph Moore resumed coverage of NVIDIA Corporation (NASDAQ:NVDA) with an Equal Weight rating and a $217 price target. The analyst said that while NVIDIA Corporation (NASDAQ:NVDA) remains one of the top growth names in the semiconductor sector, he is concerned about softness in gaming and the high valuation compared to peers. He has accounted for a "significant deceleration" in gaming that will lead to a "modestly challenging" 2023 for NVIDIA Corporation (NASDAQ:NVDA), offset by its "robust" data center exposure.
According to the fourth quarter database of Insider Monkey, NVIDIA Corporation (NASDAQ:NVDA) was found in the public investment portfolios of 110 hedge funds, compared to 83 funds in the last quarter. Ken Fisher’sFisher Asset Managementis a significant shareholder of the company, with more than 5 million shares worth $1.50 billion.
Hereis what RiverPark Long/Short Opportunity Fund has to say about NVIDIA Corporation (NASDAQ:NVDA) in its Q1 2022 investor letter:
“Nvidia is the leading designer of graphics processing chips (commonly known as GPU’s- graphics processing units), required for powerful computer processing. Over the past 20 years, the company has evolved through innovation and adaptation from a predominantly gaming- focused chip vendor to one of the largest semiconductor/software vendors in the world, dominating the core secular growth markets of gaming, data centers and professional visualization. Over the past decade, the company has grown revenue at a compound annual rate of over 20% while expanding operating margins and, through its asset light business model, producing ever increasing amounts of free cash flow. For 2021 the company generated 61% revenue growth to $27 billion, expanded its EBITDA margins to over 44% and generated over $8 billion of free cash flow. Over the past five years, the company has generated a cumulative $23 billion of FCF after cumulative capital expenditures of less than $4 billion.
1. SoFi Technologies, Inc. ($SoFi Technologies Inc.(SOFI)$ )
Number of Hedge Fund Holders: 24
SoFi Technologies, Inc. (NASDAQ:SOFI) was founded in 2011 and is headquartered in San Francisco, California. The company offers digital financial services, operating through three segments – Lending, Technology Platform, and Financial Services.
SoFi Technologies, Inc. (NASDAQ:SOFI) posted its Q1 2022 results, reporting a GAAP loss per share of $0.14, in line with analysts’ consensus estimates. The revenue of $321.73 million climbed 48.9% year-over-year, ahead of Street estimates by $37.74 million.
Credit Suisse analyst Timothy Chiodo reiterated a Neutral rating on SoFi Technologies, Inc. (NASDAQ:SOFI) and lowered the firm's price target on the stock to $9.50 from $15.50 following quarterly results. The analyst noted that SoFi Technologies, Inc. (NASDAQ:SOFI) came in ahead of its updated Q1 guidance, and reported a slightly increased full year 2022 revenue guide. While the analyst continues to see SoFi Technologies, Inc. (NASDAQ:SOFI) as comparatively well positioned among American Neobanks, he slightly lowered his estimates given the underlying trends during Q1.
According to Insider Monkey’s fourth quarter database, 24 hedge funds were bullish on SoFi Technologies, Inc. (NASDAQ:SOFI), with collective stakes worth $826.2 million, compared to 33 funds in the last quarter, holding stakes in the company valued at $852.8 million. Jim Davidson, Dave Roux, and Glenn Hutchins’Silver Lake Partnersis the leading shareholder of SoFi Technologies, Inc. (NASDAQ:SOFI), with 31.15 million shares worth $492.5 million.
In addition to Coinbase Global, Inc. (NASDAQ:COIN), NVIDIA Corporation (NASDAQ:NVDA), and Apple Inc. (NASDAQ:AAPL), institutional investors are pouring into SoFi Technologies, Inc. (NASDAQ:SOFI).
Hereis what Altron Capital Management has to say about SoFi Technologies, Inc. (NASDAQ:SOFI) in its Q4 2021 investor letter:
“We have been building our position in SoFi over the last two quarters but have not yet written about our thesis until now. SoFi is an online financial technology company that started off refinancing student loans. This segment remains a big part of the company’s business, but they have more recently expanded their products to offer an entire suite of financial services including personal banking, investing, and credit. While their collection of products is still evolving and not yet complete, we believe the company is in the early stages of its inflection. The company nearly doubled its member count over the past year and is growing 50%+ despite its loan refinancing business taking a hit due to the COVID-related loan moratorium. Furthermore, the company is close to obtaining a bank charter through its acquisition of Golden Pacific Bancorp, a community bank based in Sacramento. A bank charter would allow SoFi to take in its own customer deposits, lowering its cost of capital and expanding the company’s breadth of financial offerings.
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