5 Small-Cap Stocks With Insider Buying

3. V2X, Inc. (NYSE:VVX)

Number of Hedge Fund Holders: 19

V2X, Inc. (NYSE:VVX) is a Virginia-based company that provides critical mission solutions and support services to defense customers in the United States and internationally. On November 15, an officer at V2X, Inc. (NYSE:VVX) acquired 500 shares of the company valued at $42.28 per share. As of March 10, the stock trades at $40.21, indicating a negative return of 4.8% since the officer purchased the company shares.

On January 25, RBC Capital analyst Ken Herbert initiated coverage of V2X, Inc. (NYSE:VVX) with an Outperform rating and a $55 price target. V2X is the result of the Vectrus-Vertex merger that took place in July 2022, and according to the analyst, investors don’t fully understand it yet. However, there are some concerns about contract timing and budget risks, which has made the firm conservative in its 2023 estimates, that are lower than the consensus. Nevertheless, RBC is optimistic about V2X’s future and believes that the stock will gain value as investors become more familiar with its expanded capabilities, potential for increased margins, and reduction in debt.

According to Insider Monkey’s fourth quarter database, 19 hedge funds were bullish on V2X, Inc. (NYSE:VVX), compared to 18 funds in the prior quarter. Portolan Capital Management is the biggest investor in the company.