In this article, we discuss the 5 best micro-cap stocks to buy according to hedge funds. If you want to read about some more micro-cap stocks, go directly to 10 Best Micro-Cap Stocks to Buy According to Hedge Funds.
5. Kimball International, Inc. (NASDAQ:KBAL)
Number of Hedge Fund Holders: 12
Kimball International, Inc. (NASDAQ:KBAL) makes and sells furniture products. The firm has an impressive dividend history stretching back 32 years. On February 7, the company declared a quarterly dividend of $0.09 per share, in line with previous. The forward yield was 3.81%. Despite rising raw material and labor costs, as well as logistical challenges due to supply chain disruptions, the firm has entered 2022 with record backlog and the management has also affirmed previous guidance for the present fiscal year.
Some of the products that Kimball International, Inc. (NASDAQ:KBAL) markets include height desks, office chairs and stools, file cabinets, tables, lounge seating, as well as furniture solutions for the healthcare industry.
At the end of the fourth quarter of 2021, 12 hedge funds in the database of Insider Monkey held stakes worth $25 million in Kimball International, Inc. (NASDAQ:KBAL), compared to 14 in the previous quarter worth $30 million.
4. Standard BioTools Inc. (NASDAQ:LAB)
Number of Hedge Fund Holders: 17
Standard BioTools Inc. (NASDAQ:LAB) markets instruments and software for clinical laboratories. In late March, the stock climbed nearly 10% after the company announced that Caligan Partners, the largest shareholder of Standard BioTools, had agreed to a strategic capital infusion from Casdin Capital and Viking Global Investors. In return for the agreement, Caligan has recommended that a life sciences expert join the board of directors of the company upon the completion of the deal.
On April 11, Standard BioTools Inc. (NASDAQ:LAB) announced that it would be launching the Hyperion+ Imaging System, a new system that provides high-plex spatial imaging with lower limits of detection and improved sample capacity and time to results.
At the end of the fourth quarter of 2021, 17 hedge funds in the database of Insider Monkey held stakes worth $62 million in Standard BioTools Inc. (NASDAQ:LAB), up from 16 in the preceding quarter worth $118 million.
3. CyberOptics Corporation (NASDAQ:CYBE)
Number of Hedge Fund Holders: 17
CyberOptics Corporation (NASDAQ:CYBE) markets high precision sensing technology solutions and system products. Some of these include memory module inspection systems, sensors and systems for semiconductor wafer and advanced packaging inspection and metrology, as well as high precision 3D and 2D sensors. The stock has climbed more than 52% in the past twelve months. The shares stand to benefit from the chip shortage around the world that have led to an increase in chip prices amid high demand.
On March 28, CyberOptics Corporation (NASDAQ:CYBE) announced that it had received an order worth nearly $2 million for 3D MX3000 memory module inspection systems that are powered by Multi-Reflection sensors.
Among the hedge funds being tracked by Insider Monkey, Maryland-based investment firm AIGH Investment Partners is a leading shareholder in CyberOptics Corporation (NASDAQ:CYBE) with 499,017 shares worth more than $23 million.
2. Hovnanian Enterprises, Inc. (NYSE:HOV)
Number of Hedge Fund Holders: 18
Hovnanian Enterprises, Inc. (NYSE:HOV) is a New Jersey-based homebuilding firm. On March 1, the company posted earnings for the first fiscal quarter of 2022, reporting earnings per share of $3.07 and a revenue of more than $565 million, down 1.6% year-on-year. The firm guided revenue of $700 million to $750 million for the second fiscal quarter and a gross margin of 23% to 25%. For the full fiscal year, the guidance for the revenue was $2.8 billion to $3 billion and gross margin was expected to be between 23.5% to 25.5%.
Hovnanian Enterprises, Inc. (NYSE:HOV) stands to benefit from the increase in home prices as inflation and interest rates also rise. However, the Dallas Fed has warned that US home prices risk going out of step with market fundamentals if this increase is not checked.
Among the hedge funds being tracked by Insider Monkey, New York-based investment firm Renaissance Technologies is a leading shareholder in Hovnanian Enterprises, Inc. (NYSE:HOV) with 214,415 shares worth more than $27 million.
1. Accuray Incorporated (NASDAQ:ARAY)
Number of Hedge Fund Holders: 20
Accuray Incorporated (NASDAQ:ARAY) makes and sells radiotherapy systems for alternative cancer treatments. In addition to North America, the firm serves regions such as Europe, the Middle East, India, Africa, Japan, and China, among others. On February 10, the stock rose nearly 10% after the company announced that data from a phase 3 trial of the TomoTherapy System, a new system developed by the firm for breast cancer patients, suggested that the system was superior to radiotherapy in preserving long-term heart and lung functioning.
In late January, Accuray Incorporated (NASDAQ:ARAY) had posted earnings for the second fiscal quarter, reporting a revenue of $116 million, up over 19% compared to the revenue over the same period last year and beating estimates by $13.3 million.
At the end of the fourth quarter of 2021, 20 hedge funds in the database of Insider Monkey held stakes worth $98 million in Accuray Incorporated (NASDAQ:ARAY), up from 18 in the previous quarter worth $81 million.
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