5 Top Stocks to Buy Today According to Rob Koehn’s Ivy Lane Capital

4. Avalara, Inc. (NYSE: AVLR)

Value: $19,577,000
Percentage of Ivy Lane’s 13F Portfolio: 13.84%
Number of Hedge Fund Holders: 29

Avalara, Inc. (NYSE: AVLR) is an American software company providing services in automated tax compliance. The company delivers solutions for global transaction taxes, such as VAT, excise, GST, etc. Avalara, Inc. (NYSE: AVLR) has over 30,000 customers in 95 countries.

Ivy Lane Capital holds 121,000 shares in Avalara, Inc. (NYSE: AVLR), worth over $19.5 million in the second quarter of 2021. The hedge fund bought 18,000 shares in the company in Q2, which now accounts for 13.84% of the fund’s 13F portfolio. In Q2, Avalara, Inc. (NYSE: AVLR) posted an EPS of $0.02, beating the consensus by $0.12. The company’s revenue of $169.1 million beat the estimates by $14.8 million. In August, Raymond James appreciated the company’s Q2 earnings beat and growth in customers. Recently, the firm lifted its price target on Avalara, Inc. (NYSE: AVLR) to $220, with an ‘Outperform’ rating on the shares. The stock delivered a 37.3% return in the past year.

As of Q2 2021, 29 hedge funds have positions in Avalara, Inc. (NYSE: AVLR), worth $1.03 billion.

Alger released its Q1 2021 investor letter and mentioned Avalara, Inc. (NYSE: AVLR) in it. Here is what the firm has to say:

“Avalara Inc. was among the top detractors from performance. Avalara is leading provider of cloud-based solutions and services that enable companies to automate the complex and onerous burden of statutory transactional tax compliance. Avalara’s solutions include an advanced database of broad and up-to-date tax content with technology for executing compliance processes including tax determination, tax document management and returns preparation and filing, which enable businesses of all sizes to automate transaction tax compliance, process transactions in real time, produce accurate tax records, and reduce errors and audit exposure. Today, Avalara has 14,890 core customers. Avalara underperformed in the first quarter as part of a broader sector rotation away from high-growth software stocks. After material outperformance in 2020, the correction in Avalara’s stock price is due to increasing interest rates negatively impacting growth-focused companies like Avalara. Business fundamentals for Avalara have remained strong, with the company seeing an elevated demand pipeline and early signs of business momentum in the enterprise segment. We view increased digitization as a result of the Covid-19 pandemic as a long-term tailwind for Avalara’s software business.”