Cupps Capital Slashes Portfolio in Q3, But Couldn’t Stop Buying These 5 Stocks

Glaukos Corp (NYSE:GKOS)

– Shares Owned by Cupps Capital Management (as of September 30): 65,680

– Value of the Holding (as of September 30): $2.48 Million

Glaukos Corp (NYSE:GKOS) was a new entrant to Cupps Capital Management’s equity portfolio during the third quarter. Shares of the ophthalmic medical technology company have performed exceedingly well in the last few months and are currently trading up by 37% for 2016. On November 10, Glaukos Corp (NYSE:GKOS) reported much better than expected third quarter results. The net income of the company increased by 156.3% year-over-year to $1.2 million, while net sales grew by 55.8% year-over-year to $29.6 million. Despite such strong numbers, Glaukos’ stock took a massive beating the next day due to the comments made by its CFO, Richard Harrison, during the earnings call. Mr. Harrison said that although the third quarter was profitable, the company may not remain profitable going forward due to its rapidly progressing pipeline and its focus on the global market penetration of the iStent surgery.

Medidata Solutions Inc (NASDAQ:MDSO)

– Shares Owned by Cupps Capital Management (as of September 30): 47,254

– Value of the Holding (as of September 30): $2.63 Million

Medidata Solutions Inc (NASDAQ:MDSO) was another stock that made its debut in Cupps Capital Management’s equity portfolio during the third quarter. Nick Niell‘s Arrowgrass Capital Partners also initiated a stake in Medidata Solutions Inc (NASDAQ:MDSO) during that time, purchasing 116,315 shares of the company. Although Medidata’s stock has performed well this year, rising by 12.66% year-to-date, it has largely been range-bound over the last three years. For its fiscal 2016 third quarter, the company reported EPS of $0.28 on revenue of $120.10 million, beating analysts’ projections of EPS of $0.26 on revenue of $118.96 million. Following the earnings release, analysts at Jefferies Group reiterated their ‘Underperform’ rating on the stock on October 26, but boosted their price target on it to $41 from $36, which still represents potential downside of 26%.

Cavium Inc (NASDAQ:CAVM)

– Shares Owned by Cupps Capital Management (as of September 30): 56,822

– Value of the Holding (as of September 30): $3.31 Million

With Cupps Capital Management increasing its stake in the company by 115% during the third quarter, Cavium Inc (NASDAQ:CAVM) jumped to the 15th spot in the fund’s portfolio at the end of that period. The semiconductor processors provider lost more than 35% of its market cap during the second quarter, but its stock made a U-turn in the next quarter and recouped most of those losses. Nevertheless, Cavium Inc (NASDAQ:CAVM)’s stock is still trading down by 17% year-to-date. The company managed to beat earnings and revenue estimates with its third quarter results, which it reported earlier this month. Citing that strong performance, on November 2, analysts at Benchmark Co. upped their price target on the stock to $63 from $60, while keeping their rating on it unchanged at ‘Buy’.

Disclosure: None