5 High Growth Financial Stocks To Buy

3. NatWest Group plc (NYSE:NWG)

Number of Hedge Fund Holders: 7

Quarterly Revenue Growth YoY as of December 30, 2022: 42.7%

NatWest Group plc (NYSE:NWG) was founded in 1727 and is headquartered in Edinburgh, the United Kingdom. It provides banking and financial products and services to personal, commercial, corporate, and institutional customers in the United Kingdom and internationally. It operates through Retail Banking, Private Banking, Commercial & Institutional segments. NatWest Group plc (NYSE:NWG)’s total income of £3.71 billion climbed 42.7% on a year-over-year basis. 

Aman Rakkar, an analyst at Barclays, downgraded NatWest Group plc (NYSE:NWG) from Overweight to Equal Weight and set a price target of 400 GBp on February 6. The analyst believes that there are potential long-term risks associated with the bank’s liquidity unwind and deposit outflows. The analyst expressed concern that these factors could lead to “over-earning” issues.

According to Insider Monkey’s third quarter database, 7 hedge funds were bullish on NatWest Group plc (NYSE:NWG), compared to 10 funds in the prior quarter. Peter Rathjens, Bruce Clarke, and John Campbell’s Arrowstreet Capital is the leading stakeholder of the company, with 3.34 million shares worth $16.6 million. 

Here is what Artisan Partners has to say about NatWest Group plc (NYSE:NWG) in its Q2 2021 investor letter:

“It is worth discussing two positions that we sold, (which includes) Natwest Group. Natwest, a majority state-owned British banking and insurance firm, was one of the worst investments we’ve ever made.

Natwest Group was purchased in 2013. Since that initial purchase, the investment’s total return was negative 44% and the largest negative contribution to performance. Over the same time period, the MSCI EAFE Index has increased by 79%. It is important to consider the return of the index, as the damage done by your manager must include both the 44% loss and the opportunity cost of owning an average stock…” (Click here to see the full text)