In this article, we discuss the 10 stocks under $30 to buy according to David Einhorn’s Greenlight Capital. If you want to skip our detailed analysis of these stocks, go directly to the 5 Stocks Under $30 to Buy According to David Einhorn’s Greenlight Capital.
David Einhorn, an American hedge fund manager and notable investor, founded Greenlight Capital in 1996, with $900,000 startup capital. The long-short value oriented hedge fund has a portfolio valued at $1.49 billion as of the third quarter of 2021, with a top ten holdings concentration of 73.81%.
Einhorn graduated from Cornell University in 1991 with a Bachelor’s degree, and shortly thereafter founded his own hedge fund. In its initial days, Greenlight Capital’s strategy was to identify weak companies for short selling, and the fund consequently made significant profits by shorting financial firms like Conseco, CompuCredit, Sirrom Capital, and Resource America. Via its affiliates, Greenlight Capital now manages a fund of funds, a private equity fund, and works in the property and casualty reinsurance field.
The third quarter portfolio of David Einhorn’s Greenlight Capital is concentrated in the transports, materials, information technology, finance, and consumer discretionary sectors. The largest holding in Einhorn’s portfolio as of September 2021 is Green Brick Partners, Inc. (NYSE:GRBK), which is a home building and land development company. Einhorn has gone on record to say that holding a significant stake in Green Brick Partners, Inc. (NYSE:GRBK) is a strategic hedge against rising inflation.
David Einhorn, via Greenlight Capital, purchased 9 new stocks in the third quarter, sold out of 22 securities, made additional purchases in 12 companies, and reduced holdings in 13 equities. His top buys for Q3 included iShares Silver Trust (NYSE:SLV), Brighthouse Financial, Inc. (NASDAQ:BHF), and LivaNova PLC (NASDAQ:LIVN), whereas, he reduced holdings in Concentrix Corporation (NASDAQ:CNXC), Joby Aviation, Inc. (NYSE:JOBY), and SPDR S&P 500 ETF Trust (NYSE:SPY), among others.
David Einhorn of Greenlight Capital
The most notable stocks in David Einhorn’s Q3 portfolio include GoPro, Inc. (NASDAQ:GPRO), Twitter, Inc. (NYSE:TWTR), PLBY Group, Inc. (NASDAQ:PLBY), and Victoria’s Secret & Co. (NYSE:VSCO).
Our Methodology
We used the Q3 portfolio of David Einhorn’s Greenlight Capital to select his top 10 stock picks under $30, ranking the stocks according to Einhorn’s stake value in each holding.
Stocks Under $30 to Buy According to David Einhorn’s Greenlight Capital
10. Sonos, Inc. (NASDAQ:SONO)
Greenlight Capital’s Stake Value: $11,769,000
Percentage of Greenlight Capital’s 13F Portfolio: 0.78%
Number of Hedge Fund Holders: 49
Share Price as of December 15: $29.09
Sonos, Inc. (NASDAQ:SONO), an American consumer electronics company known for its multi-room audio products, is one of the top stock picks of David Einhorn priced under $30. David Einhorn, via Greenlight Capital, owns 363,680 shares of Sonos, Inc. (NASDAQ:SONO), worth $11.76 million, representing 0.78% of the hedge fund’s total Q3 investments. David Einhorn increased his stake in Sonos, Inc. (NASDAQ:SONO) by 55% in the third quarter.
In the Q3 earnings published on November 17, Sonos, Inc. (NASDAQ:SONO) posted an EPS of $0.08, missing estimates by $0.02. The revenue increased 5.80% year-over-year to $359.54 million, but missed estimates by $695,390.
Morgan Stanley analyst Katy Huberty on November 18 raised the price target on Sonos, Inc. (NASDAQ:SONO) to $53 from $51 and kept an Overweight rating on the shares, stating that the company’s FY22 revenue growth guidance being 6 points ahead of consensus reinforces Sonos, Inc. (NASDAQ:SONO) as the key consumer hardware idea for 2022.
The largest Sonos, Inc. (NASDAQ:SONO) stakeholder, D E Shaw, increased its position in the company by 20% in Q3 2021, holding 2.30 million shares worth $74.5 million. Overall, 49 hedge funds tracked by Insider Monkey were bullish on Sonos, Inc. (NASDAQ:SONO) at the end of September, up from 47 funds in the preceding quarter.
In addition to GoPro, Inc. (NASDAQ:GPRO), Twitter, Inc. (NYSE:TWTR), PLBY Group, Inc. (NASDAQ:PLBY), and Victoria’s Secret & Co. (NYSE:VSCO), Sonos, Inc. (NASDAQ:SONO) is a notable stock from David Einhorn’s Q3 portfolio.
Here is what Canterbury Tollgate has to say about Sonos, Inc. (NASDAQ:SONO) in its Q3 2021 investor letter:
“The CEO of Sonos says this is the most difficult time he’s seen in the semiconductor space because of the supply chain and port difficulties.xi Considering Sonos is selling more in-home audio equipment than ever, his words aren’t any type of excuse. Ships are anchored out at sea waiting to get into ports, largely due to slow turnaround times because the ports have been operating at 50-70 percent of the labor they need. This should improve in the coming months with more and more people suddenly and simultaneously looking for work.”
9. Graphic Packaging Holding Company (NYSE:GPK)
Greenlight Capital’s Stake Value: $15,846,000
Percentage of Greenlight Capital’s 13F Portfolio: 1.06%
Number of Hedge Fund Holders: 28
Share Price as of December 15: $19.81
Graphic Packaging Holding Company (NYSE:GPK) is a Georgia-based packaging company, offering paperboard and folding cartons for the consumer goods sector, particularly for beverage and food companies. David Einhorn owns 832,270 shares of Graphic Packaging Holding Company (NYSE:GPK) as of Q3 2021, worth $15.8 million, representing 1.06% of his total portfolio.
Graphic Packaging Holding Company (NYSE:GPK) announced on November 18 a quarterly dividend payable on January 15, valued at $0.075 per share, for shareholders of record on December 15.
In the third quarter earnings report, published on October 26, Graphic Packaging Holding Company (NYSE:GPK) posted an EPS of $0.34, beating estimates by $0.03. The quarterly revenue of $1.78 billion missed estimates by $42.49 million.
On November 24, Raymond James analyst Joshua Wilson initiated coverage of Graphic Packaging Holding Company (NYSE:GPK) with a Strong Buy rating and a $24.50 price target.
Of the 28 hedge funds that were bullish on Graphic Packaging Holding Company (NYSE:GPK) in Q3 2021, Impax Asset Management is the largest stakeholder of the company, with 8.86 million shares worth $167.75 million.
Here is what L1 Capital has to say about Graphic Packaging Holding Company (NYSE:GPK) in its Q3 2021 investor letter:
“We reinvested the proceeds from the partial sale of Eagle Materials by increasing the Fund’s position in Graphic Packaging. We expect the company to deliver strong earnings and cash flow over coming years, and the company remains undervalued at its current share price.”
8. EchoStar Corporation (NASDAQ:SATS)
Greenlight Capital’s Stake Value: $26,202,000
Percentage of Greenlight Capital’s 13F Portfolio: 1.75%
Number of Hedge Fund Holders: 25
Share Price as of December 15: $25.83
David Einhorn owns more than 1 million shares of EchoStar Corporation (NASDAQ:SATS), a Colorado-based satellite communication and internet services provider, worth $26.2 million, representing 1.75% of his total Q3 securities.
EchoStar Corporation (NASDAQ:SATS) posted its Q3 results on November 9. The company reported earnings per share of $0.40, surpassing estimates by $0.04. The revenue increased 6.58% year-over-year, totaling $504.66 million, beating estimates by $10.81 million.
At the end of September, 25 hedge funds in the database of Insider Monkey reported owning stakes in EchoStar Corporation (NASDAQ:SATS), worth $241.6 million. This is compared to 26 funds being bullish on the stock in Q2, with stakes amounting to $246.5 million.
Jim Simons’ Renaissance Technologies is the biggest EchoStar Corporation (NASDAQ:SATS) stakeholder as of the third quarter, holding 2.20 million shares worth $56.2 million.
Priced at $25.83 on December 15, EchoStar Corporation (NASDAQ:SATS) is one of the best stocks under $30 to buy according to David Einhorn’s Greenlight Capital.
7. Resideo Technologies, Inc. (NYSE:REZI)
Greenlight Capital’s Stake Value: $33,840,000
Percentage of Greenlight Capital’s 13F Portfolio: 2.26%
Number of Hedge Fund Holders: 28
Share Price as of December 15: $24.72
Resideo Technologies, Inc. (NYSE:REZI) is a company offering home security and residential thermal products including temperature and humidity control, thermal water and air solutions, security panels, sensors, video cameras, awareness solutions, cloud infrastructure, and related software.
David Einhorn’s Greenlight Capital owns 1.36 million Resideo Technologies, Inc. (NYSE:REZI) shares, worth $33.84 million in the third quarter, representing 2.26% of the firm’s total investments.
In the third quarter earnings report, announced on November 4, Resideo Technologies, Inc. (NYSE:REZI) posted an EPS of $0.46, exceeding estimates by $0.02. The $1.50 billion revenue for Q3 missed estimates by $26.40 million.
Morgan Stanley analyst Erik Woodring on October 6 lowered the price target on Resideo Technologies, Inc. (NYSE:REZI) to $31 from $33 and kept an Equal Weight rating on the shares, as part of the firm’s downgrade of their IT hardware industry view to Cautious.
28 hedge funds in the Q3 database of 867 elite funds tracked by Insider Monkey were long Resideo Technologies, Inc. (NYSE:REZI), with total stakes worth $525.8 million. The largest stakeholder of Resideo Technologies, Inc. (NYSE:REZI) is Praesidium Investment Management Company, with 7.36 million shares worth $182.5 million.
In addition to GoPro, Inc. (NASDAQ:GPRO), Twitter, Inc. (NYSE:TWTR), PLBY Group, Inc. (NASDAQ:PLBY), and Victoria’s Secret & Co. (NYSE:VSCO), Resideo Technologies, Inc. (NYSE:REZI) is a notable stock from David Einhorn’s Q3 portfolio.
6. GoPro, Inc. (NASDAQ:GPRO)
Greenlight Capital’s Stake Value: $34,303,000
Percentage of Greenlight Capital’s 13F Portfolio: 2.30%
Number of Hedge Fund Holders: 31
Share Price as of December 15: $10.62
An American technology company with a product portfolio including action cameras, mobile applications, and video-editing software, GoPro, Inc. (NASDAQ:GPRO) is one of the best stocks under $30 to buy according to David Einhorn’s Greenlight Capital, priced at $10.62 as of December 15.
Greenlight Capital owns 3.66 million GoPro, Inc. (NASDAQ:GPRO) shares as of September this year, valued at $34.3 million, accounting for 2.30% of the firm’s total investments.
Publishing its third quarter earnings on November 4, GoPro, Inc. (NASDAQ:GPRO) posted an EPS of $0.34, beating estimates by $0.14. The $316.67 million revenue jumped 12.89% year-over-year, outperforming estimates by $24.58 million.
Wedbush analyst Alicia Reese upgraded GoPro, Inc. (NASDAQ:GPRO) on December 13 to Outperform from Neutral with a price target of $13.50, up from $11, as she believes multiple drivers are firmly in place for GoPro, Inc. (NASDAQ:GPRO) to drive margin growth in the coming quarters.
Out of the 867 hedge funds monitored by Insider Monkey in the third quarter, 31 funds were long GoPro, Inc. (NASDAQ:GPRO), up from 28 funds in the prior quarter. Michael Zimmerman’s Prentice Capital Management is the largest GoPro, Inc. (NASDAQ:GPRO) shareholder from Q3, increasing its stake in the company by 8%, holding 6.82 million shares worth $63.8 million.
Here is what Roubaix Capital has to say about GoPro, Inc. (NASDAQ:GPRO) in their Q4 2020 investor letter:
“Companies like GoPro (GPRO) should benefit from the consumer rebound, but also have their own unique drivers of value over the next 2+ years. In the case of GPRO, the company launched its newest action camera, the GoPro9, under the umbrella of a new business model. The company offers a discount on the camera when customers purchase a subscription agreement that comes with additional services and benefits. The uptake of the subscription has been strong to date and offers the company a line of sight to a higher margin and more predictable revenue stream. The stock’s low double digit earnings multiple remains undemanding. We have seen this type of transformation play out in numerous situations in software, hardware and even retail companies such as RH. We see GPRO following suit and expect a return to travel later this year to be another reason for consumers to buy a new camera as they head back out on vacation.”
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Disclosure: None. 10 Stocks Under $30 to Buy According to David Einhorn’s Greenlight Capital is originally published on Insider Monkey.
