In this article, we discuss the 10 small-cap stocks to buy according to billionaire Steve Cohen. You can skip our detailed analysis of Steve Cohen’s hedge fund, and go directly to read 5 Small-Cap Stocks to Buy According to Billionaire Steve Cohen.
Billionaire investor Steve Cohen is the brain behind Point72 Asset Management, a hedge fund investing in high-growth sectors such as technology, services, healthcare, and consumer goods. Cohen also founded the global venture capital firm Point72 Ventures. As of the end of September 2021, Point72 Asset Management holds a portfolio value of approximately $23 billion.
According to the Q3 13F filings tracked by Insider Monkey, some of the biggest holdings in the portfolio of Point72 Asset Management at the end of September included Uber Technologies, Inc. (NYSE:UBER), Meta Platforms, Inc. (NASDAQ:FB), salesforce.com, inc. (NYSE:CRM), and Microsoft Corporation (NASDAQ:MSFT).
Between June and September 2021, Point72 Asset Management added 398 new stocks to its portfolio and purchased additional shares in 295 stocks. Point72 Asset Management also reported that 324 stocks were sold out by them in Q3 2021, while the hedge fund reduced its holdings in 253 stocks.
In this article, we will focus on the small-cap stocks to buy according to Steve Cohen.
Our Methodology
The stocks listed below were chosen from Steve Cohen’s Point72 Asset Management investment portfolio for the third quarter. These small-cap companies are operating in various industries such as biotech, cloud computing, healthcare, and manufacturing.
We picked these small-cap stocks included in Steve Cohen’s portfolio that have a market capitalization not higher than $3 billion.
Let’s now take a look at the 10 small-cap stocks to buy according to billionaire Steve Cohen.
Small-Cap Stocks to Buy According to Billionaire Steve Cohen
10. Arcutis Biotherapeutics, Inc. (NASDAQ:ARQT)
Number of Hedge Fund Holders: 12
Market Cap as of January 9: $939 million
Biopharmaceutical company Arcutis Biotherapeutics, Inc. (NASDAQ:ARQT) is among the small-cap stocks to buy according to Steve Cohen. The California-based company develops and sells therapeutic medications for dermatological diseases such as psoriasis and atopic dermatitis.
After the firm filed its first drug application in plaque psoriasis, Mizuho analysts maintained a Buy rating on Arcutis Biotherapeutics, Inc. (NASDAQ:ARQT) with a price target of $58 on November 24. Additionally, during Q3, Steve Cohen upped his stake in Arcutis Biotherapeutics, Inc. (NASDAQ:ARQT) by 123% and the stock now accounts for 0.2% of his total holdings.
Arcutis Biotherapeutics, Inc. (NASDAQ:ARQT) shares increased 11.5% in the third week of November after the company disclosed data indicating that Arcutis’ proprietary cream, roflumilast, had similar moisturizing properties to a commercially marketed ceramide-containing moisturizer in adults with mild eczema.
At the end of the third quarter of 2021, 12 hedge funds in the database of Insider Monkey held stakes worth $471 million in Arcutis Biotherapeutics, Inc. (NASDAQ:ARQT), compared to 13 in the preceding quarter worth $518 million.
Among the hedge funds being tracked by Insider Monkey, Frazier Healthcare Partners is a leading shareholder in Arcutis Biotherapeutics, Inc. (NASDAQ:ARQT) with 8.43 million shares worth more than $201 million.
9. CytomX Therapeutics, Inc. (NASDAQ:CTMX)
Number of Hedge Fund Holders: 14
Market Cap as of January 9: $254 million
CytomX Therapeutics, Inc. (NASDAQ:CTMX) is a clinical-stage biopharmaceutical company that develops therapeutic antibodies for cancer treatment. The California-based biotech firm is co-developing a potential drug candidate for cancer with some of the popular drugmakers in the world such as AbbVie Inc. (NYSE:ABBV), Amgen Inc. (NASDAQ:AMGN), and Astellas Pharma Inc. (OTC:ALPMY).
In the third quarter of 2021, Point72 Asset Management slashed its stake in CytomX Therapeutics, Inc. (NASDAQ:CTMX) by 2%. Yet, the hedge fund remains the largest shareholder of the biotech company holding 6.30 million shares of CytomX Therapeutics, Inc. (NASDAQ:CTMX) worth $32 million at the end of the September quarter.
In November, Kaveri Pohlman of BTIG kept his Buy rating on CytomX Therapeutics, Inc. (NASDAQ:CTMX) with a price target of $16 per share. Pohlman is optimistic about the company’s “unparalleled ability” to improve the therapeutic index of cytokines. The biopharmaceutical company ended Q3 with a strong cash position of $336 million.
According to Insider Monkey’s Q3 data, 14 hedge funds had stakes in CytomX Therapeutics, Inc. (NASDAQ:CTMX), compared to 17 in the second quarter of 2021. The total value of the holdings is $85.4 million.
8. Bicycle Therapeutics plc (NASDAQ:BCYC)
Number of Hedge Fund Holders: 15
Market Cap as of January 9: $1.5 billion
Bicycle Therapeutics plc (NASDAQ:BCYC) is a biopharmaceutical company that develops chemically synthesized medicines using bicyclic peptides. The company is innovating potential medication for cancer and diabetic macular edema. As of the end of the third quarter of 2021, Steve Cohen held 1.62 million shares of Bicycle Therapeutics plc (NASDAQ:BCYC) worth $67.2 million, representing 0.29% of his portfolio.
Although the drugmaker missed revenue estimates by $1.42 million, Bicycle Therapeutics plc (NASDAQ:BCYC) reported an EPS of -$0.59 in Q3 2021, beating estimates by $0.03. On December 17, SVB Leerink analyst Jonathan Chang initiated an Outperform rating on Bicycle Therapeutics plc (NASDAQ:BCYC) with a price target of $70 per share.
At the end of the September quarter, 15 hedge funds in the database of Insider Monkey held stakes worth $286 million in Bicycle Therapeutics plc (NASDAQ:BCYC), up from 12 in the preceding quarter worth $163 million.
Among the hedge funds being tracked by Insider Monkey, Tybourne Capital Management is a leading shareholder in Bicycle Therapeutics plc (NASDAQ:BCYC) with 1.96 million shares worth more than $81 million.
Just like Uber Technologies, Inc. (NYSE:UBER), Meta Platforms, Inc. (NASDAQ:FB), salesforce.com, inc. (NYSE:CRM), and Microsoft Corporation (NASDAQ:MSFT), investors and analysts are also following Bicycle Therapeutics plc (NASDAQ:BCYC).
7. VNET Group, Inc. (NASDAQ:VNET)
Number of Hedge Fund Holders: 16
Market Cap as of January 9: $1.3 billion
VNET Group, Inc. (NASDAQ:VNET) is a data center service provider based in China. The company offers hosting, cloud computing, IT infrastructure, and other value-added internet services. Steve Cohen increased his stake in the company during Q3 2021 by 25% to 1.51 million shares worth $26.2 million. VNET Group, Inc. (NASDAQ:VNET) represents 0.11% of Point72 Asset Management’s total holdings.
The Chinese tech company has a market cap of $1.3 billion and is working on growing its business by signing a joint venture to pursue development and investment opportunities in multiple build-to-suit hyper-scale data center projects in China.
At the end of the third quarter of the quarter, 16 hedge funds in the database of Insider Monkey held stakes worth $173 million in VNET Group, Inc. (NASDAQ:VNET), compared to 23 in the previous quarter worth $265 million.
Among the hedge funds being tracked by Insider Monkey, Bloom Tree Partners is a leading shareholder in VNET Group, Inc. (NASDAQ:VNET) with 2.8 million shares worth more than $48.5 million.
6. Caleres, Inc. (NYSE:CAL)
Number of Hedge Fund Holders: 17
Market Cap as of January 9: $860 million
Another small-cap stock in Steve Cohen’s portfolio is global shoe manufacturer Caleres, Inc. (NYSE:CAL). During the third quarter, Point72 Asset Management owned 539,313 shares of the company, comprising 0.05% of the fund’s holdings. The stake is valued at $11.9 million.
The Missouri-based footwear designer sells its company-owned shoe brands including Dr. Scholl’s Shoes and Naturalizer. The company also markets private-level athletic accessories and products from Adidas, Nike, Puma, and Converse to name a few.
Caleres, Inc. (NYSE:CAL) shares were up 5% on November 18 after the company beat earnings and revenue estimates in Q3 2021. The shoemaker reported an EPS of $1.54 and total revenue of $784 million in the period. In addition, the company’s inventory levels grew 7.1% year over year.
Laura Champine of Loop Capital anticipates an improving growth trend for Caleres, Inc. (NYSE:CAL) into early FY 2022 following a rebound in the company’s Famous Footwear segment in Q3. Champine increased her price target for the stock to $40 from $35 while maintaining a Buy rating on the shares on November 19.
At the end of the third quarter of the quarter, 17 hedge funds in the database of Insider Monkey held stakes worth $76 million in Caleres, Inc. (NYSE:CAL), compared to 18 in the previous quarter worth $81 million.
Owning 597,952 shares of Caleres, Inc. (NYSE:CAL) worth $13 million at the end of the third quarter of 2021, Portolan Capital Management is the largest shareholder of the shoe company.
Caleres, Inc. (NYSE:CAL) is among the notable stocks in Steve Cohen’s portfolio along with Uber Technologies, Inc. (NYSE:UBER), Meta Platforms, Inc. (NASDAQ:FB), salesforce.com, inc. (NYSE:CRM), and Microsoft Corporation (NASDAQ:MSFT).
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Disclosure. None. 10 Small-Cap Stocks to Buy According to Billionaire Steve Cohen is originally published on Insider Monkey.
