In this piece, we will take a look at the ten best stocks under $30 according to billionaire D.E. Shaw.
Amidst the ongoing turmoil in the stock market that has seen major indices lose big chunks of value, it is time to take a look at some cheap stocks that are seeing hedge fund interest. One of the most well known hedge funds on Wall Street is D.E. Shaw, which is based in New York, United States.
An interesting fact about the hedge fund is that it might have inadvertently contributed to Amazon.com, Inc.’s (NASDAQ:AMZN) founder and former chief executive officer Mr. Jeff Bezos to have become the world’s richest person. Prior to setting up Amazon, Mr. Bezos rose in ranks at D.E. Shaw and went on to become a senior vice president, but left the role after becoming dissatisfied.
Moving towards Dr. Shaw, the executive is known for his interest in computer science. He received his doctorate degree from Stanford University in 1980, becoming another billionaire to attend the renowned university that is also famous for being associated with search engine giant Google’s founders Mr. Larry Page and Mr. Sergey Brin.
After graduating from Stanford, Dr. Shaw worked as an assistant professor and continued pursuing his passion for computer science. He would continue to do so even after setting up D.E. Shaw.
However, D.E. Shaw was not the executive’s first tryst in the financial world. He started his career at the investment bank, Morgan Stanley, in 1986 where he worked at setting up an in-house trading group. He is credited for having contributed significantly to Morgan Stanley’s quantitative investments at the time.
After a brief stint at Morgan Stanley, Dr. Shaw would move forward and set up D.E. Shaw in 1988. The hedge fund follows its founder’s investment approach and takes a quantitative look at stocks after meticulously researching them. Within six years the hedge fund would go on and deliver as much as 26% in returns to investors.
Dr. Shaw has since then moved on from managing his hedge fund. He is currently heading a private research firm in New York titled D.E. Shaw Research (DESRES). This group focuses on several areas such as biotechnology and computer science. Dr. Shaw is also one of the richest people in the world, being worth a cool $7.5 billion as of May 2022 according to Forbes Magazine.
DE Shaw’s hedge fund had a portfolio that was worth a whopping $106 billion as the first quarter of this year came to an end. Out of the countless companies present in it, some that are likely to catch your eye are the Ford Motor Company (NYSE:F), AMC Entertainment Holdings, Inc. (NYSE:AMC), and The Coca-Cola Company (NYSE:KO).
David E. Shaw of D.E. Shaw
Our Methodology
In order to pick D.E. Shaw’s (the fund) top under $30 stocks, we took a look at its Q1 2022 SEC filings. After the companies were picked and sorted, we took a look at their earnings reports, investor letters, analyst ratings, large shareholdings, and overall hedge fund sentiment gathered through Insider Monkey’s database of 912 hedge fund filings for the first quarter of this year.
10 Best Stocks Under $30 According to DE Shaw
10. Pinterest, Inc. (NYSE:PINS)
D.E. Shaw’s Stake Value: $123 million
Percentage of D.E. Shaw’s 13F Portfolio: 0.12%
Number of Hedge Fund Holders: 56
Stock Price as of May 25, 2022: $18.14
Pinterest, Inc. (NYSE:PINS) is an internet company that allows its users to accumulate images and other ideas on its website.
For the first quarter of 2022, D.E. Shaw had held a $123 million stake in Pinterest, Inc. by owning 5 million shares of the company. Insider Monkey’s Q1 2022 912 hedge fund survey picked out 56 as also having invested in the firm.
Pinterest, Inc. raked in $574 million in revenue and $0.10 in non-GAAP EPS for its fiscal Q1, beating estimates for revenue and EPS. DA Davidson reduced its price target to $20 from $33 in April 2022, worrying that engagement headwinds might persist in the future.
Pinterest, Inc.’s largest investor is Natixis Global Asset Management’s Harris Associates. The firm owns 18 million shares that are worth $456 million.
AMC Entertainment Holdings, Inc., Ford Motor Company, and The Coca-Cola Company meet Pinterest, Inc. as a top D.E. Shaw stock pick.
9. Sunrun Inc. (NASDAQ:RUN)
D.E. Shaw’s Stake Value: $128 million
Percentage of D.E. Shaw’s 13F Portfolio: 0.12%
Number of Hedge Fund Holders: 37
Stock Price as of May 25, 2022: $21.98
Sunrun Inc. (NASDAQ:RUN) is a residential solar energy systems provider based in the United States. The company sells and maintains solar energy systems for households and it also provides solar panels, racks, and batteries. It is headquartered in San Francisco, California.
D.E. Shaw held a $128 million stake in Sunrun Inc. as the first quarter of this year came to an end. This came in the form of 4.2 million shares and the stake represented a small 0.12% of the firm’s investment portfolio. Insider Monkey’s 912 hedge fund survey for the same time period outlined that 37 had also bought the company’s shares.
Sunrun Inc. posted $495 million in revenue and -$0.42 in GAAP EPS for its fiscal Q1, beating Wall Street revenue estimates but missing them for EPS. Morgan Stanley kept an $89 price target for the company in May 2022, sharing that its installation guidance was a pleasant surprise.
Sunrun Inc.’s largest investor is William B. Gray’s Orbis Investment Management which owns 10 million shares that are worth $325 million.
8. Transocean Ltd. (NYSE:RIG)
D.E. Shaw’s Stake Value: $132 million
Percentage of D.E. Shaw’s 13F Portfolio: 0.12%
Number of Hedge Fund Holders: 30
Stock Price as of May 25, 2022: $4.15
Transocean Ltd. (NYSE:RIG) is an oil and gas company that is headquartered in Steinhausen, Switzerland. The company provides oil and gas drilling services and equipment to firms that extract oil offshore. The company owns drilling units and floaters as part of its portfolio that serves both government and private sector needs.
Piper Sandler raised its price target to $3.85 from $3 in April 2022, outlining that the company should benefit from higher crude oil prices.
Dr. Shaw’s investment firm owned 28 million Transocean Ltd. shares for a $132 million stake during Q1 2022 making it the company’s largest investor. Insider Monkey’s 912 hedge fund portfolio analysis for the same time period revealed that 30 out of 912 hedge funds had holdings in the firm.
David Greenspan’s Slate Path Capital is Transocean Ltd.’s second largest investor through a $61 million stake. This comes through the fund owning 13 million shares of the oil and gas company.
7. Cenovus Energy Inc. (NYSE:CVE)
D.E. Shaw’s Stake Value: $140 million
Percentage of D.E. Shaw’s 13F Portfolio: 0.13%
Number of Hedge Fund Holders: 44
Stock Price as of May 25, 2022: $21.94
Cenovus Energy Inc. (NYSE:CVE) is a Canadian crude oil, natural gas, and natural gas liquids, provider. The company has facilities in the United States and Canada in which it produces bitumen and heavy oil and converts them into crude oil, diesel, and other products.
For its fiscal first quarter, Cenovus Energy Inc. reported C$17.9 billion in revenue and C$0.81 in GAAP EPS, with its revenue marking a 15.4% annual increase but missing analyst estimates. Credit Suisse raised the company’s share price target to C$32 from C$28 in May 2022 and kept an Overweight rating on the shares.
D.E. Shaw’s Q1 2022 stake in Cenovus Energy Inc. was worth $140 million and it represented 0.13% of the firm’s investment portfolio. Insider Monkey scanned 912 hedge fund holdings for the same quarter to find out that 44 had also bought a stake in the oil company.
Eric W. Mandelblatt’s Soroban Capital Partners is Cenovus Energy Inc.’s largest investor. It owns an $808 million stake that comes through 48 million shares.
6. Plug Power Inc. (NASDAQ:PLUG)
D.E. Shaw’s Stake Value: $150 million
Percentage of D.E. Shaw’s 13F Portfolio: 0.14%
Number of Hedge Fund Holders: 33
Stock Price as of May 25, 2022: $15.2
Plug Power Inc. (NASDAQ:PLUG) is a hydrogen fuel cell solutions provider based out of Latham, New York, United States. The company primarily targets industries and it provides products such as fuel cells, fuel cell processing, hydrogen storage, generation, and disposal facilities.
Dr. Shaw’s investment firm owned 5.2 million Plug Power Inc. shares that were worth $150 million and represented 0.14% of its investment portfolio as part of its Q1 2022 investments. During the same time period, 33 of the 912 hedge funds analyzed by Insider Monkey had also invested in the company.
Plug Power Inc. posted $140 million in revenue and -$0.27 in GAAP EPS for its fiscal Q1 earnings, missing analyst estimates for both. Morgan Stanley kept a $60 price target for the company’s shares in May 2022 as it highlighted that Plug Power Inc.’s contract for a one gigawatt hydrogen production facility in Denmark alone can provide huge cash inflows.
Plug Power Inc.’s largest investor after D.E. Shaw is Ken Griffin’s Citadel Investment Group which owns 3.3 million shares that are worth $96 million.
Ford Motor Company, AMC Entertainment Holdings, Inc., and The Coca-Cola Company are joined by Plug Power Inc. in D.E. Shaw’s favorite stocks.
5. Range Resources Corporation (NYSE:RRC)
D.E. Shaw’s Stake Value: $151.8 million
Percentage of D.E. Shaw’s 13F Portfolio: 0.14%
Number of Hedge Fund Holders: 36
Stock Price as of May 25, 2022: $29.86
Range Resources Corporation (NYSE:RRC) is an American oil and gas company headquartered in Fort Worth, Texas. The company owns more than a thousand production wells in the U.S. and it sells natural gas to a wide variety of firms ranging from marketing companies to utilities.
D.E. Shaw owned 4.9 million Range Resources Corporation shares as the first quarter of this year came to an end. These were worth $151.8 million and constituted 0.14% of its investment portfolio. This also made the firm Range Resources Corporation’s largest investor. Insider Monkey researched 912 hedge funds for 2022’s first quarter to find out that 36 had also invested in the company.
Range Resources Corporation raked in $180 million in revenue and$1.18 in non-GAAP EPS for its first fiscal quarter, meeting analyst EPS estimates. Susquehanna raised its price target to $34 from $24 in April 2022, highlighting that the raise was part of updated forecasts for the oil and gas sector.
Range Resources Corporation’s second largest investor is Stephen Mildenhall’s Contrarius Investment Management which owns 3.3 million shares that are worth $100 million.
4. Southwestern Energy Company (NYSE:SWN)
D.E. Shaw’s Stake Value: $180 million
Percentage of D.E. Shaw’s 13F Portfolio: 0.16%
Number of Hedge Fund Holders: 35
Stock Price as of May 25, 2022: $7.96
Southwestern Energy Company (NYSE:SWN) is an oil and gas explorer, producer, and developer that is based in Spring, Texas, United States. It has billions of cubic feet in natural gas reserves and focuses on reservoirs located in Pennsylvania, Virginia, Ohio, and Louisiana.
For its first fiscal quarter results, Southwestern Energy Company raked in $2.94 in revenue and $0.40 in non-GAAP EPS, in a strong set of results that beat Wall Street analyst estimates for both metrics. Citi raised its share price target to $8.25 from $6 in April 2022.
D.E. Shaw’s Q1 2022 investment in Southwestern Energy Company was worth $180 and it came in the form of 25 million shares. For the same time period, 35 of the 912 hedge funds profiled by Insider Monkey had invested in the firm.
David Iben’s Kopernik Global Investors is Southwestern Energy Company’s largest investor after D.E. Shaw through a $97 million stake that comes via 13 million shares.
3. United States Steel Corporation (NYSE:X)
D.E. Shaw’s Stake Value: $209 million
Percentage of D.E. Shaw’s 13F Portfolio: 0.19%
Number of Hedge Fund Holders: 37
Stock Price as of May 25, 2022: $24.01
United States Steel Corporation (NYSE:X) is, as the name suggests, an American steel producer. The firm provides a large variety of steel and steel based products such as tin, coke, iron ore, steel sheets, strip mill plates, slabs, and pipes.
Dr. Shaw’s investment firm owned 5.5 million United States Steel Corporation shares by the close of this year’s January quarter. This enabled it to hold a $209 million stake in the company. Similarly, by the end of Q1 2022, 37 hedge funds in Insider Monkey’s 912 fund survey had invested in the company.
United States Steel Corporation reported $5 billion in revenue and $3.05 in non-GAAP EPS for its fiscal Q1, beating analyst EPS estimates but missing them for revenue. JPMorgan raised the company’s price target to $30 from $33 in March 2022, as it used upgraded steel price forecasts to justify the decision.
United States Steel Corporation’s largest investor is Eric W. Mandelblatt’s Soroban Capital Partners which owns 11 million shares that are worth $440 million.
2. AMC Entertainment Holdings, Inc. (NYSE:AMC)
D.E. Shaw’s Stake Value: $286 million
Percentage of D.E. Shaw’s 13F Portfolio: 0.26%
Number of Hedge Fund Holders:16
Stock Price as of May 25, 2022: $10.57
AMC Entertainment Holdings, Inc. is a theater chain operating in the United States. It is headquartered in Leawood, Kansas, and was founded in 1920, making it a quintessential American brand. The firm owns close to a thousand theaters in the U.S. and Europe.
AMC Entertainment Holdings, Inc.’s fiscal first quarter earnings report revealed that it had brought in $785 million in revenue and -$0.52 in non-GAAP EPS, a big win for the company as it beat analyst estimates for both. The company’s shares rose by as much as 15% in early March 2022.
D.E. Shaw held a $286 million stake in AMC Entertainment Holdings, Inc. during Q1 2022. This came through the firm owning 11.6 million shares of a company that has seen serious volatility in its shares due to the battle between institutional and retail investors. D.E. Shaw was also AMC Entertainment Holdings, Inc.’s largest investor during this time according to data of hedge funds tracked by Insider Monkey. During the same time period, 16 of the 912 hedge fund holdings scanned by Insider Monkey contained the company’s shares.
Jim Simons’s Renaissance Technologies is AMC Entertainment Holdings, Inc.’s largest investor through a $45 million stake that comes through 1.8 million shares.
1. Ford Motor Company (NYSE:F)
D.E. Shaw’s Stake Value: $528 million
Percentage of D.E. Shaw’s 13F Portfolio: 0.49%
Number of Hedge Fund Holders:46
Stock Price as of May 25, 2022: $12.48
Ford Motor Company is an iconic American automobile manufacturer that is headquartered in Dearborn, Michigan. The company manufactures and sells all kinds of vehicles such as sports utility vehicles (SUVs), trucks, cars, electric, and luxury vehicles.
Ford Motor Company raked in $34.5 billion in revenue and $0.38 in non-GAAP EPS for its fiscal first quarter earnings, beating Wall Street analyst estimates as it showed signs of recovery after a major downturn in the sector in the wake of a semiconductor shortage. Tigress Financial raised the company’s share price target to $22 from $20 in May 2022, stating that strong vehicle demand will help revenue growth.
D.E. Shaw owned a $528 million stake in Ford Motor Company as 2022’s January quarter ended. Insider Monkey studied 912 hedge fund filings for Q1 2022 to discover that 46 had also invested in the company.
Ford Motor Company’s second largest investor is Ken Griffin’s Citadel Investment Group which owns 7.9 million shares that are worth $133 million.
