5 Micro-Cap Stocks to Buy According to Hedge Funds

3. Sientra, Inc. (NASDAQ:SIEN)

Number of Hedge Fund Holders: 21

Market Capitalization: $264.5 million

Sientra, Inc. (NASDAQ:SIEN) produces and supplies plastic surgery implantable components. The company offers breast augmentation, breast reconstruction, and advanced scar treatment. The industry is in the growth phase as the market for augmentation is at an all-time high. Sientra, Inc. (NASDAQ:SIEN) considers itself in a strong position to reap the benefits.

On October 27, the US Food and Drug Authority (FDA) has made the safety standards for breast implants stringent by taking numerous actions to communicate the risk related to breast implants. Under the guidelines, manufacturers and suppliers of breast implants are required to restrict the sale and distribution of breast implants so that they make an informed decision. Furthermore, the companies are also required to update their labeling. All this needs to be done within a period of 30 days following the announcement.

Sientra, Inc. (NASDAQ:SIEN) posted Q3 2021 results on November 21. The company reported revenue of $19.6 million, which outperformed the analysts’ estimate of $18.34 million. Moreover, Sientra, Inc. (NASDAQ:SIEN) recorded GAAP EPS of -$0.08, beating the analysts’ estimate by $0.1.