4. IDT Corporation (NYSE:IDT)
Number of Hedge Fund Holders: 10
IDT Corporation (NYSE:IDT) is a US-based telecom company that offers money transfer, mobile top-up, and unified communication services. As of February 8, shares of IDT Corporation (NYSE:IDT) have gained 114.91% in the last 12 months. 10 hedge funds reported ownership of IDT Corporation (NYSE:IDT) shares at the close of the third quarter, with combined stakes worth $101.48 million. In comparison, 13 hedge funds held stakes worth $91.86 million in the company at the close of Q2 2021.
In February, IDT Corporation (NYSE:IDT) announced that its money transfer service BOSS Money has expanded in Africa, which will enable US customers to send money to Sierra Leone and Togo. Customers in the United States can now send money to 22 African countries through IDT Corporation (NYSE:IDT), with pick-up or cash deposit available at over 215,000 locations.
In January, IDT Corporation (NYSE:IDT) made further headway by acquiring a majority stake in Sochitel, a global digital distribution platform that offers mobile top-ups, electronic vouchers and other fintech services. This will allow IDT Corporation (NYSE:IDT) to build on Sochitel’s dominant footprint in Africa, and increase its digital payment services in the continent.
IDT Corporation (NYSE:IDT) also signed a strategic partnership with AVANT in December, which is the US’s premier distributor of next-gen technologies. Through this deal, Avant will offer IDT’s net2phone communication and collaboration solutions to the US and international customers through their global network of trusted advisors.
IDT Corporation (NYSE:IDT) boasts three growth subsidiaries through each of its segments offering money transfer, point of sale (POS), and unified communications services. After the recent spinoff of the company’s net2phone segment, IDT Corporation (NYSE:IDT) management is now considering the establishment of Mobile Top-Up as a separate segment, which holds the potential to be worth almost twice the company’s current stock price in a 2-year period.
Alta Fox Capital discussed IDT Corporation (NYSE:IDT) in its Q3 2021 investor letter, stating:
“In July, we published our research on IDT Corporation (IDT). IDT is the investment we have spent the most cumulative research time on this year. Researching this business has been a fascinating deep dive into various operating businesses and a management team and Board that we believe are some of the greatest capital allocators of all time. In September, we announced a private deal to purchase 2.5% of NRS, a subsidiary of IDT, for $10 million. For reasons highlighted in our original IDT report, we believe NRS has the potential to be worth a couple of billion dollars in a few years, multiples of the entire IDT enterprise value today.”
