5 Best Automation Stocks To Buy Now

3. Alteryx, Inc. (NYSE:AYX)

Number of Hedge Fund Holders: 53      

Alteryx, Inc. (NYSE:AYX) engages in the analytic process automation business. On December 16, investment advisory Needham maintained a Buy rating on Alteryx, Inc. (NYSE:AYX) stock and raised the price target to $56 from $42, noting the price target increase reflected mid-teens ARR growth, operating margin expansion, and ramping free cash flow margin of the firm. 

At the end of the third quarter of 2023, 53 hedge funds in the database of Insider Monkey held stakes worth 782 million in Alteryx, Inc. (NYSE:AYX), compared to 39 the preceding quarter worth $565 million.

In its Q2 2023 investor letter, Madison Investments, an asset management firm, highlighted a few stocks and Alteryx, Inc. (NYSE:AYX) was one of them. Here is what the fund said:

“In Technology, our overweight was a sail in the wind, but two stocks disappointed: Alteryx, Inc. (NYSE:AYX) and Ciena (CIEN). Although we continue to hold both stocks, we are closely monitoring the developments at AYX. Some investors fear the rise of artificial intelligence (AI) may pose a headwind to AYX. Although the evidence for this thesis is thin, we will not hesitate to cut our losses should we find this to be the case. Ciena’s fundamentals continue to recover but investors are concerned that the large backlog the company is currently monetizing will not be replenished quickly enough. We believe these fears are unjustified and continue to like this business in the long run as this business is an underappreciated beneficiary of AI infrastructures build outs.”