5 Small-Cap Value Stocks Hedge Funds Love

4. Academy Sports and Outdoors, Inc. (NASDAQ:ASO)

Number of Hedge Fund Shareholders: 40

Hedge fund ownership of Academy Sports and Outdoors, Inc. (NASDAQ:ASO) dipped by 15% in Q1, but has otherwise been strong over the last several quarters, including jumping by 77% between the company’s Q4 2020 IPO and Q2 2021. Jim Simons’ Renaissance Technologies and Steve Cohen’s Point72 Asset Management both owned more than 1 million ASO shares on March 31, with both also more than doubling their stakes in the company during Q1.

Academy Sports and Outdoors, Inc. (NASDAQ:ASO) has been a strong performer on the market over the last year, gaining 19% amid a declining broader market. The sporting goods retailer has been making strong gains on both the bricks-and-mortar and digital sides of its business, all while chasing down its debt.

Academy Sports and Outdoors, Inc. (NASDAQ:ASO) issued strong 33% – 33.5% gross margin guidance for FY 2022 in June alongside its second quarter results, which prompted a price target upgrade to $72 from $70 by Stephens analyst Daniel Imbro, who has an ‘Overweight’ rating on the stock. ASO shares trade at 6.38x forward earnings, down from 8.29x in 2020.