This article presents an overview of the 5 Best Mid-Cap Growth Stocks To Buy Now. For a detailed overview of such stocks, read our article, 16 Best Mid-Cap Growth Stocks To Buy Now.
5. SentinelOne Inc (NYSE:S)
Number of Hedge Fund Investors: 45
California-based cybersec company SentinelOne Inc (NYSE:S) shares have gained about 56% over the past six months. Earlier this month SentinelOne Inc (NYSE:S) posted strong third quarter results. Adjusted EPS in the quarter came in at -$0.03, surpassing estimates by $0.05. Revenue jumped 42.5% year over year to $164.17 million, beating estimates by $7.85 million.
A total of 45 hedge funds in Insider Monkey’s database had stakes in SentinelOne Inc (NYSE:S). The biggest hedge fund stakeholder of SentinelOne Inc (NYSE:S) during this period is Kevin Michael Ulrich and Anthony Davis’s Anchorage Advisors which owns a $166 million stake in SentinelOne Inc (NYSE:S).
Baron Discovery Fund made the following comment about SentinelOne, Inc. (NYSE:S) in its Q3 2023 investor letter:
“We initiated a position in SentinelOne, Inc. (NYSE:S) this quarter after the stock fell sharply on its March 2023 quarterly results. The company lowered its full-year guidance for revenue growth by about 10%, and it will still grow annualized recurring revenue by a mid-30s rate. We believe that the market over reacted to the update, and we already saw a positive update in its June 2023 results (increasing full-year revenue growth to 43%). This is a classic fallen angel investment for the Fund.
SentinelOne is a cybersecurity vendor primarily focused on endpoint protection (preventing malicious attacks on corporate laptops, mobile devices, and servers). The company collects petabytes of data from over 15 million endpoints across its customer base and uses artificial intelligence (AI) to learn behavior patterns, detect suspicious activity, proactively hunt threats, and roll-back devices to their pre-breach states to mitigate damage when attacks occur. SentinelOne is widely recognized as a technology leader in the $27 billion endpoint and cloud security industry due to its AI-powered detection and its ease of use. As a result, the business has been winning market share away from legacy antivirus vendors who struggle to keep up with the rapidly evolving threat environment. More than 11,000 organizations have adopted SentinelOne, with customers including half the Fortune 10, government agencies, and many of the world’s largest managed security service providers (MSSPs). MSSPs, which represent 20% to 30% of SentinelOne’s revenue, extend the company’s reach to thousands of small businesses who lack adequate IT resources to defend against cyberattacks…” (Click here to read the full text)
4. Toast Inc (NYSE:TOST)
Number of Hedge Fund Investors: 46
Cloud-based restaurant management software company Toast Inc (NYSE:TOST) ranks 4th in our list of the best mid-cap growth stocks to buy now according to hedge funds.
Baird Equity Research in November upgraded the stock to Outperform from Neutral.
As of the end of the third quarter of 2023, 46 hedge funds out of the 910 funds tracked by Insider Monkey had stakes in Toast Inc (NYSE:TOST). The most significant stakeholder of Toast Inc (NYSE:TOST) was Mick Hellman’s HMI Capital which owns a $269 million stake in Toast Inc (NYSE:TOST).
3. Inspire Medical Systems Inc (NYSE:INSP)
Number of Hedge Fund Investors: 49
Minnesota-based Inspire Medical Systems Inc (NYSE:INSP) shares were spotted in 49 hedge fund portfolios as of the end of the third quarter, according to Insider Monkey’s database of 910 hedge funds.
In November Inspire Medical Systems Inc (NYSE:INSP) posted third quarter results. GAAP EPS in the quarter came in at -$0.29, beating estimates by $0.27. Revenue in the period jumped 40.7% year over year to $153.3 million, surpassing estimates by $1.24 million.
Carillon Chartwell Small Cap Value Fund made the following comment about Inspire Medical Systems, Inc. (NYSE:INSP) in its Q3 2023 investor letter:
“Inspire Medical Systems, Inc. (NYSE:INSP) is a medical device company focused on the obstructive sleep apnea market. While Inspire continues to grow at a rapid pace, investors are concerned that the successful launches of glucagon-like peptide 1 (GLP-1) weight loss drugs will have a negative impact on Inspire’s growth rates in the future.”
2. Sarepta Therapeutics Inc (NASDAQ:SRPT)
Number of Hedge Fund Investors: 50
Earlier this month, Citi started covering Sarepta Therapeutics Inc (NASDAQ:SRPT) with a Buy rating. Citi likes Sarepta Therapeutics Inc’s (NASDAQ:SRPT) risk/reward profile heading into FDA’s review of Sarepta Therapeutics Inc’s (NASDAQ:SRPT) drug Elevidys for full approval for the treatment of Duchenne muscular dystrophy.
A total of 50 hedge funds tracked by Insider Monkey had stakes in Sarepta Therapeutics Inc (NASDAQ:SRPT). The most significant stakeholder of Sarepta Therapeutics Inc (NASDAQ:SRPT) was Kurt Von Emster’s VenBio Select Advisor which owns a $488 million stake in Sarepta Therapeutics Inc (NASDAQ:SRPT).
Bronte Capital Amalthea Fund made the following comment about Sarepta Therapeutics, Inc. (NASDAQ:SRPT) in its Q3 2023 investor letter:
“The FDA is widely considered to be the world’s foremost regulator of drug products, with a stringent and rigorous process for evaluating new marketing applications. Disagreements between the FDA and regulators in other developed markets (such as the European Medicines Agency or the Australian Therapeutic Goods Administration (TGA)) are rare, and when they do occur, it is usually because the FDA has taken a more critical view of the applicant’s evidence.
For a drug to be approved in the US, it must meet the statutory requirement of “substantial evidence of effectiveness” under the Federal Food, Drug, and Cosmetic Act. There are essentially three ways to meet this requirement. Normally, the FDA expects the sponsor to succeed in two “adequate and well-controlled studies”. Alternatively, the sponsor can rely on success from a single study if the results from that study are “very persuasive”, or if they are combined with some sort of independent confirmatory evidence. For the most part lobbying from the cohort of patients, the “patient voice”, has played a relatively minor role in the FDA’s decision-making process and the agency has been prepared to make tough but rational decisions when the “substantial evidence” standard is clearly not met.
However, this was not the case in 2016 when the FDA famously overruled its own review team and external advisory committee to approve Sarepta Therapeutics, Inc.’s (NASDAQ:SRPT) controversial drug for Duchenne muscular dystrophy (Exondys 51). At the time, Sarepta had completed a single phase 2 trial in just 12 patients which, per the FDA Commissioner (Robert Califf) himself, had “major flaws” in both its design and conduct. Ellis Unger, director of the Office of Drug Evaluation at the FDA, declared that the drug was a “scientifically elegant placebo”, and that patients and their families were taking on unknown risks for likely non-existent benefits…” (Click here to read the full text)
1. BILL Holdings Inc (NYSE:BILL)
Number of Hedge Fund Investors: 54
Financial software company BILL Holdings Inc (NYSE:BILL) saw strong insider buying activity in November when Bill’s Director David Hornik bought 17,710 shares of BILL Holdings Inc (NYSE:BILL) at $56.49 per share. The stock was trading at around $74.08 as of January 4 market close.
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