5 Stocks to Buy According to Robert W. Koehn’s Ivy Lane Capital

4. Avalara, Inc. (NYSE:AVLR)

Ivy Lane Capital Stake Value: $16,784,000
Percentage of Ivy Lane Capital’s 13F Portfolio: 11.81%
Number of Hedge Fund Holders: 34

Avalara, Inc. (NYSE:AVLR) is a company that offers cloud-based solutions. Taxability, preparing and filing forms, remitting taxes, identifying appropriate tax rates, calculating and collecting taxes, preserving tax records, and managing compliance papers are all areas of concentration for the company. In the fourth quarter, Robert W. Koehn added 8% to his existing stake in Avalara, Inc. (NYSE:AVLR), holding a total of 130,000 shares worth $16.78 million. As a result, Avalara, Inc. (NYSE:AVLR) stock accounts for 11.81% of the hedge fund’s Q4 portfolio.

Canaccord analyst David Hynes decreased his price objective on Avalara, Inc. (NYSE:AVLR) to $140 from $205 on February 14 and maintained a Buy recommendation on the stock. The model and goal of the analyst have been adjusted to reflect a resetting of sector multiples and the assumption that the new normal for elevated enterprises in the industry would trade in the 10-15x future range.

Of the 924 elite funds tracked by Insider Monkey, 34 were bullish on Avalara, Inc. (NYSE:AVLR) in the fourth quarter of 2021. Panayotis Takis Sparaggis’s Alkeon Capital Management is the leading stakeholder of Avalara, Inc. (NYSE:AVLR), with a $369.88 million stake.

In its fourth quarter 2021 investor letter Baron Funds, an asset management firm, mentioned Avalara, Inc. (NYSE:AVLR). Here is what the fund said:

“Shares of Avalara, Inc., a leading cloud-based provider of transactional tax automation software, detracted from performance. The company reported solid quarterly earnings. Nevertheless, the stock sold off on a combination of a sequential deceleration in organic billings growth (explained mostly by a tough comparison) and the broader weakness in high-growth, high-multiple stocks during the quarter. We maintain conviction in the investment, as Avalara operates in a large market, has strong competitive advantages, and is poised to grow revenue at least 20% for many years, in our view.”