4. BigCommerce Holdings, Inc. (NASDAQ: BIGC)
Number of Hedge Fund Holders: 26
BigCommerce Holdings, Inc. (NASDAQ: BIGC) is operating in the ecommerce industry that is seeing exponential growth as consumers are preferring to buy and sell online over physicals stores. The Texas-based company’s Cloud solutions help customers make online stores and manage their B2B, multi-channel and international ecommerce operations.
BigCommerce Holdings, Inc. (NASDAQ: BIGC) stock has gained 30% in the last 30 days.
Last month, Guggenheim upgraded the stock to Neutral from Sell and said that the company’s valuation has become at par with its peers. This was after BigCommerce Holdings, Inc. (NASDAQ: BIGC) posted upbeat Q1 results. Morgan Stanley also upgraded the stock to Equal Weight from Underweight and kept its price target of $57.
Citi also upgraded the stock to Neutral from Sell but slashed its price target by $10 to $55.
Matrix Capital Management is one of the 26 hedge funds tracked by Insider Monkey having stakes in BIGC at the end of the first quarter. The fund owns over 3.9 million shares of the company.
Alger Small Cap Focus Fund, in their Q1 2021 investor letter, mentioned BigCommerce Holdings, Inc. (NASDAQ: BIGC). Here is what the fund has to say about BigCommerce Holdings, Inc. in its letter:
“BigCommerce Holdings, Inc. was among the top detractors from performance. BigCommerce operates a software-as-a-service platform, providing various services for launching and scaling e-commerce operations, including store design, catalog management, web hosting, checkout, order management and reporting As of December 31, 2020, it served approximately 60,000 online stores across industries in approximately 155 countries. The stock underperformed during the first quarter after the company provided guidance that was below the peer group average for growth for 2021, which indicated possible market share loss. The company monetizes its services with software subscriptions, which represent 67% of its sales, and by processing digital payments as the majority of partner and services revenues, which represents 33% of sales. BigCommerce recognizes its revenues from digital payments on a net basis, which understates the payment revenue contribution and margin compared to its peer group which recognizes revenues on gross basis.
BigCommerce has transformed over the last decade into a flexible digital commerce platform powering the next wave of online shopping for mid-market and enterprise customers. BigCommerce is differentiated among modern cloud platforms because its open SaaS architecture uniquely positions the firm for the more complex needs of mid- market and enterprise merchants. This is a big opportunity. and we believe BigCommerce is well-positioned for continued market share gains.”
