In this article, we discuss 3 stocks to buy according to Eduardo Costa’s Calixto Global Investors. If you want to read our detailed analysis of Costa’s history, investment philosophy, and hedge fund performance, go directly to 7 Stocks to Buy According to Eduardo Costa’s Calixto Global Investors.
3. Nexstar Media Group, Inc. (NASDAQ:NXST)
Calixto Global Investors’ Stake Value: $27,463,000
Percentage of Calixto Global Investors’ Portfolio: 18.34%
Number of Hedge Fund Holders: 39
A television broadcasting and digital media firm, Nexstar Media Group, Inc. (NASDAQ:NXST) acquires, develops, and runs television stations, interactive community websites, and digital media services. Seth Klarman’s Baupost Group is Nexstar Media Group, Inc. (NASDAQ:NXST)’s most significant stakeholder, with 1.15 million shares worth $216.32 million.
On May 12, Deutsche Bank analyst Connor Murphy maintained a Buy rating on Nexstar Media Group, Inc. (NASDAQ:NXST) and boosted his price objective from $216 to $225. The analyst updated the revenue, EBITDA, and free cash flow forecasts in light of the Q1 performance.
Nexstar Media Group, Inc. (NASDAQ:NXST) was in 39 hedge fund portfolios at the end of the first quarter of 2022. Comparatively, there were 41 hedge funds in our database with Nexstar Media Group, Inc. (NASDAQ:NXST) positions at the end of the previous quarter.
Nexstar Media Group, Inc. (NASDAQ:NXST) is the third-largest holding in the Q1 portfolio of Eduardo Costa’s Calixto Global Investors, with the hedge fund owning about 145,706 shares of the company, worth $27.46 million, representing 18.34% of the total 13F portfolio.
Richie Capital Group mentioned Nexstar Media Group Inc. (NASDAQ:NXST) in their Q1, 2022 investor letter. Here is what the fund said:
“Nexstar Media Group (NXST up 24.8%) – The television broadcasting and digital media company surged during the quarter after presenting at an investor conference where management pointed to a strong 2022 for both political advertising and retransmission. They have exposure to more than 80% of markets with competitive mid-term political races. NXST is developing new ad categories such as sports betting and they are focused on expanding digital ad revenue and providing digital solutions to local advertisers. Auto advertising will return in the fall as auto dealerships re-enter the market to sell their replenished inventory.”
2. Five9, Inc. (NASDAQ:FIVN)
Calixto Global Investors’ Stake Value: $28,476,000
Percentage of Calixto Global Investors’ Portfolio: 19.01%
Number of Hedge Fund Holders: 52
Five9, Inc. (NASDAQ:FIVN) provides cloud-based software for contact centers both locally and internationally via its subsidiaries. Panayotis Takis Sparaggis’ Alkeon Capital Management held a significant position in Five9, Inc. (NASDAQ:FIVN), with 2.01 million shares worth $222.39 million.
Eduardo Costa’s Calixto Global Investors boosted its Five9, Inc. (NASDAQ:FIVN) stake by 42% in Q1 2022, holding about 257,934 shares worth $28.48 million, representing 19.01% of the total 13F portfolio. Five9, Inc. (NASDAQ:FIVN) has featured on the hedge fund’s portfolio since the second quarter of 2020.
Five9, Inc. (NASDAQ:FIVN) has recently experienced a decrease in hedge fund interest. Five9, Inc. (NASDAQ:FIVN) was in 52 hedge fund portfolios at the end of the first quarter of 2022, while there were 56 hedge funds in our database with Five9, Inc. (NASDAQ:FIVN) positions at the end of the previous quarter.
1. Smartsheet Inc. (NYSE:SMAR)
Calixto Global Investors’ Stake Value: $35,826,000
Percentage of Calixto Global Investors’ Portfolio: 23.92%
Number of Hedge Fund Holders: 45
Smartsheet Inc. (NYSE:SMAR) creates and develops a cloud-based platform for job management. According to Insider Monkey’s Q1 data, 45 hedge funds were bullish on Smartsheet Inc. (NYSE:SMAR), compared to 59 funds in the earlier quarter.
On June 8, Rishi Jaluria, an RBC Capital analyst, maintained a Sector Perform rating on Smartsheet Inc. (NYSE:SMAR) while increasing his price objective to $38 from $34. Michael Kahan and Jeremy Kahan’s North Peak Capital was a significant shareholder of Smartsheet Inc. (NYSE:SMAR) in the first quarter of 2022, with a position worth over $207.41 million.
Securities filings for Q1 2022 reveal that Calixto Global Investors owned 653,992 shares of Smartsheet Inc. (NYSE:SMAR), worth $35.83 million, representing 23.92% of the 13F holdings. The hedge fund elevated its position in Smartsheet Inc. (NYSE:SMAR) by 35%.
Here is what Alger, an investment management firm, has to say about Smartsheet Inc. (NYSE:SMAR) in its Q4 2021 investor letter:
“Smartsheet provides a cloud based-based platform for work management that lets employees plan and manage their work using grids, projects, cards and calendars. It enhances enterprise productivity and as such is a Positive Dynamic Change beneficiary of corporate America’s rapid digitization. We believe even as employees return to the office, demand for work management software is persistent and durable. The strong value proposition was evident in Smartsheet’s recent quarter as revenue growth and billings accelerated relative to recent periods driven by an increased mix toward upmarket enterprise level customers. Additionally, management provided guidance for next fiscal year of 37% to 40% billings growth versus a 26% consensus expectation.”
You can also take a peek at 10 Stocks to Buy According to BlueSpruce Investments and 10 Stocks to Buy According to Kevin McCarthy’s Breakline Capital.
