11 Small-Cap Tech Stocks Hedge Funds Were Buying in Q2

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8. Allot Ltd. (NASDAQ:ALLT)

Number of Hedge Fund Holders: 18

Percentage Change Since Q2: 20%

Market Cap: $463 Million

Allot Ltd. (NASDAQ:ALLT) is one of the small-cap tech stocks hedge funds were buying in Q2.

On October 23, 2025, Needham & Company initiated coverage of Allot with a Buy rating and a $12.50 price target. In its note, Needham highlighted Allot’s strategic positioning in the network intelligence and security space, citing growth potential driven by its focus on a “security-first approach.” The firm pointed to Allot’s multi-service platform, which is deployed by mobile, fixed, and cloud service providers, as a foundation for this momentum.

The Needham rating followed a similar initiation by TD Cowen just days earlier, suggesting a shift in analyst sentiment toward Allot’s turnaround narrative.

Allot Ltd. (NASDAQ:ALLT) is a Hod HaSharon, Israel-based provider of network intelligence and cybersecurity solutions. Its technology enables telecom operators and enterprises to deliver security, traffic control, and visibility across both mobile and fixed networks.

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