5 Best Small Cap Tech Stocks to Buy According to Hedge Funds 

4. BlackLine, Inc. (NASDAQ:BL)

Number of Hedge Fund Holders: 37

BlackLine, Inc. (NASDAQ:BL) is one of the best small cap tech stocks to buy according to hedge funds. BofA reinstated coverage of BlackLine, Inc. (NASDAQ:BL) with an Underperform rating on May 12, setting a price target of $26 and telling investors that while the company “remains a durable platform,” sales and marketing costs are one-third of revenue, the stock lacks a clear catalyst for multiple expansion, and billings growth prospects are limited.

In another development, Piper Sandler lifted the price target on BlackLine, Inc. (NASDAQ:BL) to $37 from $35 on May 7, maintaining a Neutral rating on the shares. The firm stated that steady progress on the transition story continued in fiscal Q1, with platform pricing attach continuing to progress well and expanding to 13% of total eligible ARR from just 4% two quarters ago. It was encouraged by management reasserting line of sight to exceeding 50% non-seat based pricing mix exiting 2026. However, Piper added that although it finds the progress and results encouraging, the firm is remaining on the sidelines given the ongoing transition and overall enterprise budget priority concerns in a backdrop where the significant AI investment cycle unfolds across the enterprise.

BlackLine, Inc. (NASDAQ:BL) provides a cloud-based software platform involved in controlling and automating financial close and accounting processes. The company’s operations are divided into the United States and International geographical segments.