4. GoodRx Holdings, Inc. (NASDAQ:GDRX)
Tiger Global Management’s Stake Value: $96,192,000
Percentage of Tiger Global Management’s 13F Portfolio: 0.18%
Number of Hedge Fund Holders: 26
Another top healthcare stock pick of Chase Coleman from Q3 2021 is GoodRx Holdings, Inc. (NASDAQ:GDRX), an American healthcare company that manages a telemedicine platform, in addition to a free website and mobile application that checks prescription drug prices across more than 75,000 pharmacies in the United States.
Chase Coleman owns 2.34 million GoodRx Holdings, Inc. (NASDAQ:GDRX) shares, worth $96.1 million, representing 0.18% of the total Q3 investments at Tiger Global Management.
GoodRx Holdings, Inc. (NASDAQ:GDRX) reported third quarter earnings on November 10. The company posted earnings per share of $0.09, in line with analysts’ consensus estimates. The revenue totaled $195.10 million, up 38.91% year-over-year, exceeding estimates by $551,120.
Jefferies analyst Glen Santangelo initiated coverage of GoodRx Holdings, Inc. (NASDAQ:GDRX) on December 1 with a Buy rating and a $47 price target. According to the analyst, GoodRx Holdings, Inc. (NASDAQ:GDRX) is a “Rule of 70-plus company, which is rare for a company of its size,” and the stock’s valuation is reasonable at current levels.
Silver Lake Partners is the largest GoodRx Holdings, Inc. (NASDAQ:GDRX) stakeholder from the third quarter, with 3.53 million shares worth $144.8 million. Overall, 26 hedge funds monitored by Insider Monkey were bullish on GoodRx Holdings, Inc. (NASDAQ:GDRX), down from 28 funds in the preceding quarter.
Here is what Baron Funds has to say about GoodRx Holdings, Inc. (NASDAQ:GDRX) in its Q3 2021 investor letter:
“We initiated a position in GoodRx Holdings, Inc., a leading consumer focused digital healthcare platform. The company’s core offering is a free App that provides consumers with access to discounts on prescription medications. This increases medication adherence since GoodRx’s discounted prices enable consumers to afford to fill their prescriptions, resulting in better health care outcomes and lower costs to the health care system. GoodRx generates revenue each time the consumer uses the GoodRx discount card for a new or refilled prescription. As GoodRx attracts more consumers to its platform, the company increases its scale, which enables it to negotiate lower prices, which attracts more consumers. GoodRx has a growing subscription business where consumers pay monthly subscription fees to access even lower drug prices. The subscription business increases GoodRx’s revenue visibility and customer lifetime value. GoodRx has a strong brand with exceptionally high Net Promoter Scores among consumers and health care providers. With 20 million monthly visitors, GoodRx has a valuable platform that it is monetizing by adding new products and services. Recent examples include its telehealth offering, pharmaceutical manufacturer solutions business, and proprietary health care content, which should help solidify GoodRx’s positioning as the go-to health care platform for consumers. GoodRx is profitable and growing rapidly with strong margins and cash flows.”
